Ettepanek

EN EN

EUROPEAN COMMISSION

Brussels, 18.10.2024

COM(2024) 471 final

2024/0259 (NLE)

Proposal for a

COUNCIL DECISION

on the signing, on behalf of the European Union, of the Enhanced Partnership and

Cooperation Agreement between the European Union, of the one part, and the Republic

of Uzbekistan, of the other part

EN 1 EN

EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

• Reasons for and objectives of the proposal

The attached proposal constitutes the legal instrument for authorising the signing of the

Enhanced Partnership and Cooperation Agreement between the European Union and the

Republic of Uzbekistan (hereinafter referred to as the 'EPCA' or the 'Agreement').

Relations between the European Union (EU) and the Republic of Uzbekistan (Uzbekistan) are

currently based on the Partnership and Cooperation Agreement (hereinafter referred to as the

'PCA') signed in Brussels on 21 June 1996, which entered into force on 1 July 1999.

On 9 October 2017, the Council adopted a Decision authorising the opening of negotiations

with Uzbekistan for an Enhanced Partnership and Cooperation Agreement. The negotiation of

the Agreement commenced in November 2018. The European Union and the Republic of

Uzbekistan finalised their negotiation of the EPCA in June 2022. On 6 July 2022, the text of

the EPCA was initialled by the chief negotiators.

The Agreement constitutes an important step towards enhancing the EU’s political and

economic engagement with Central Asia. It will provide the basis for more effective bilateral

engagement between the EU and Uzbekistan by strengthening political dialogue and

enhancing cooperation across a broad range of areas.

The EPCA covers the EU’s standard clauses on human rights, the International Criminal

Court (ICC), Weapons of Mass Destructions (WMD), Small Arms and Light Weapons

(SALW), and counter-terrorism. It also encompasses cooperation in areas such as health,

environment, climate change, energy, tax, education and culture, labour, employment and

social affairs, science and technology, and transport. The Agreement further addresses legal

cooperation, the rule of law, money laundering and terrorist financing, organised crime and

corruption. The trade part of the Agreement is expected to ensure a better regulatory

environment for economic operators and will thus bring substantial economic benefits for EU

businesses. The EPCA does not constitute an initiative within the remit of the Regulatory

Fitness Programme (REFIT).

The Agreement sets up an institutional framework composed of a Cooperation Council,

Cooperation Committee, and Parliamentary Cooperation Committee (see Title VII

'Institutional, general and final provisions'), an Intellectual Property Rights Sub-Committee,

and allows for the establishment of sub-committees and other bodies to assist the Cooperation

Council. It equally establishes a fulfilment of obligations mechanism to address failure by one

of the Parties to fulfil obligations assumed under the Agreement.

As of its entry into force, the Agreement supersedes the Partnership and Cooperation

Agreement between the European Communities and their Member States, of the one part, and

the Republic of Uzbekistan, of the other part, signed on 21 June 1996.

• Consistency with existing policy provisions in the policy area

The EPCA builds on the ambitions and needs of Uzbekistan and the EU respectively to take

forward their bilateral relationship, in the spirit of the Council conclusions on the EU’s new

Strategy on Central Asia of 17 June 2019. The Agreement will contribute to the

implementation of the EU’s new Strategy on Central Asia adopted on 15 May 2019.

EN 2 EN

The EPCA modernises the 1999 PCA, extending its scope into new areas of cooperation and

significantly upgrading the regulatory framework for our trade and economic relations in line

with the World Trade Organisation (WTO) rules and regional economic agreements.

The Agreement, once implemented, will be usefully complemented by the Generalised

System of Preferences (GSP+) mechanism, from which Uzbekistan has benefited since 2021.

This scheme offers additional tariff preferences in exchange for compliance with 27 core

human rights, governance, environment and labour conventions.

• Consistency with other Union policies

The EPCA fully respects the Treaties and preserves the integrity and the autonomy of the

Union’s legal order. It promotes the values, objectives, and interests of the Union, and ensures

the consistency, effectiveness and continuity of its policies and actions.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

• Legal basis

– Substantive legal basis

According to the case-law, if examination of an EU measure reveals that it pursues two

purposes or that it comprises two components and if one of these is identifiable as the main or

predominant purpose or component, whereas the other is merely incidental, the measure must

be founded on a single legal basis, namely that required by the main or predominant purpose

or component. Exceptionally, if it is established, on the other hand, that the measure

simultaneously pursues a number of objectives, or has several components, which are

inextricably linked without one being incidental to the other, so that various provisions of the

Treaty are applicable, the measure must be founded on the various corresponding legal bases

(see, to that effect, judgments of 10 January 2006, Commission v Parliament and Council,

C-178/03, EU:C:2006:4, paragraphs 42 and 43; of 11 June 2014, Commission v Council,

C-377/12, EU:C:2014:1903, paragraph 34; of 14 June 2016, Parliament v Council, C-263/14,

EU:C:2016:435, paragraph 44; and of 4 September 2018, Commission v Council

(Kazakhstan), C-244/17, ECLI:EU:C:2018:662, paragraph 40).

In this particular case, the Agreement pursues two main objectives and has two main

components which fall within the area of common commercial policy and development

cooperation . The legal basis of the proposed decision should therefore be Articles 207 and

2091 of the Treaty on the Functioning of the European Union (TFEU).

It is noted that the Agreement does not include areas falling within the competence of the

Member States, and therefore does not require the Member States to become a Party to this

Agreement.

– Procedural legal basis

Article 218(5) TFEU provides for the adoption of a decision by the Council on the signing of

an agreement.

1 The Republic of Uzbekistan is a lower middle income country included on the DAC list of Official

Development Assistance recipients effective for reporting on 2020, 2021, 2022 and 2023 flows, as

mentioned in Article 3(3) of the Regulation (EU) 2021/947 of the European Parliament and of the

Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation

Instrument – Global Europe.

EN 3 EN

Article 218(8) TFEU provides that the Council is to act by qualified majority except for the

circumstances listed in the second subparagraph of Article 218(8) TFEU where the Council is

to act unanimously. Given the fact that the two predominant components of the Agreement

are trade policy and development cooperation, the voting rule for this particular case is

therefore qualified majority.

Following the authorisation of the signing by the Council, in accordance with Article 17 TEU

it is the prerogative of the Commission to represent the Union externally.

• Subsidiarity (for non-exclusive competence)

The Agreement covers matters of EU exclusive competence, such as the common commercial

policy, and the EU part of a parallel competence, such as development policy. It strengthens

political dialogue and cooperation between the EU and the Republic of Uzbekistan.

Therefore, action at EU level is required.

• Proportionality

The Agreement does not go beyond what is necessary to achieve the policy objectives of

strengthening relations between the EU and the Republic of Uzbekistan, with a view to

furthering democratic reforms, the rule of law and sustainable economic development as a

means to increase the stability and security of the Republic of Uzbekistan. The Agreement

does not require the Union to amend its rules, regulations or standards in any regulated area.

3. RESULTS OF STAKEHOLDER CONSULTATIONS AND IMPACT

ASSESSMENTS

• Consultations

The Council has been regularly informed and consulted in the relevant Council Working

Party, notably in the the Working Party on Eastern Europe and Central Asia (COEST) and the

Trade Policy Committee (TPC), at all stages of the negotiations.

The European Parliament has been kept regularly and promptly informed throughout the

negotiations.

The High Representative and the Commission consider that the objectives set by the Council

in its negotiating directives have been attained, and that the draft Agreement can be submitted

for signature.

• Impact assessment

An impact assessment has not been carried out, as the Agreement mostly updates and

enhances the existing PCA, and will therefore not introduce substantial new areas of

cooperation which would have a considerable economic, social or environmental impact. The

expected impact is predominantly political - the EU aims at reinforcing a partner country's

political course and at strengthening the political capital of the EU. There can be positive

social consequences in Uzbekistan related mainly to the envisaged provisions on the rule of

law, human rights and security. An increase in trade is also expected as a result of an

improved business environment, but does not present any risk to specific industry sectors on

either side, as Uzbekistan and the EU are not competing in the same sectors. The preparation

of an impact assessment is not deemed likely to deliver results commensurate with the

resources deployed.

EN 4 EN

2024/0259 (NLE)

Proposal for a

COUNCIL DECISION

on the signing, on behalf of the European Union, of the Enhanced Partnership and

Cooperation Agreement between the European Union, of the one part, and the Republic

of Uzbekistan, of the other part

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular

Articles 207 and 209, in conjunction with Article 218(5),

Having regard to the proposal by the European Commission,

Whereas:

(1) On 16 July 2018, the Council authorised the opening of negotiations with the Republic

of Uzbekistan for an Enhanced Partnership and Cooperation Agreement,

(2) Building upon the desire of the Parties to strengthen and widen relations in an

ambitious and innovative way, the negotiation of the Enhanced Partnership and

Cooperation Agreement (‘the Agreement’) was successfully finalised by the initialling

of the Agreement on 6 July 2022,

(3) Therefore, the Agreement should be signed on behalf of the European Union,

(4) In accordance with the Treaties, it is for the Commission to ensure the signing of the

Agreement, subject to its conclusion at a later date,

HAS ADOPTED THIS DECISION:

Article 1

1. The signing of the Enhanced Partnership and Cooperation Agreement between the

European Union, of the one part, and the Republic of Uzbekistan, of the other part, is hereby

approved on behalf of the European Union, subject to the conclusion of the said Agreement.

2. The text of the Agreement to be signed is attached to this Decision.

Article 2

This Decision shall enter into force on the day following that of its publication in the Official

Journal of the European Union.

Done at Brussels,

For the Council

The President

EN EN

EUROPEAN COMMISSION

Brussels, 18.10.2024

COM(2024) 471 final

ANNEX

ANNEX

to the

Proposal for a COUNCIL DECISION

on the signing, on behalf of the European Union, of the Enhanced Partnership and

Cooperation Agreement between the European Union, of the one part, and the Republic

of Uzbekistan, of the other part

& /en 1

ENHANCED PARTNERSHIP

AND COOPERATION AGREEMENT

BETWEEN THE EUROPEAN UNION, OF THE ONE PART,

AND THE REPUBLIC OF UZBEKISTAN, OF THE OTHER PART

& /en 1

PREAMBLE

THE EUROPEAN UNION,

of the one part,

and

THE REPUBLIC OF UZBEKISTAN,

of the other part,

hereinafter jointly referred to as "the Parties",

CONSIDERING their strong ties and their common values;

CONSIDERING their desire to strengthen the mutually beneficial cooperation established through

the Partnership and Cooperation Agreement establishing a partnership between the European

Communities and their Member States, of the one part, and the Republic of Uzbekistan, of the other

part, signed in Florence on 21 June 1996;

CONSIDERING their wish to upgrade their relations to reflect new political and economic realities

and the advancement of their partnership;

EXPRESSING their common will to consolidate, deepen and diversify their cooperation at all

levels on bilateral, regional and international issues of mutual interest;

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REAFFIRMING their commitment to strengthen the promotion, protection and implementation of

human rights and fundamental freedoms, the respect for democratic principles, the rule of law and

good governance;

CONFIRMING their commitment to the principles of the Charter of the United Nations (hereinafter

referred to as the "UN Charter"), of the Universal Declaration of Human Rights, of the Organisation

for Security and Cooperation in Europe (hereinafter referred to as the "OSCE"), in particular the

Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe (hereinafter

referred to as the "OSCE Helsinki Final Act"), of the International Covenant on Civil and Political

Rights, of the International Covenant on Economic, Social and Cultural Rights as well as other

universal principles and norms of international law;

REITERATING their commitment to actively promote international peace and security and engage

in effective multilateralism and the peaceful settlement of disputes, notably by cooperating within

the framework of the UN and the OSCE;

CONSIDERING their desire to further develop regular political dialogue on bilateral and

international issues of mutual interest;

CONSIDERING their commitment to international obligations to fight against the proliferation of

weapons of mass destruction (hereinafter referred to as "WMD") and their means of delivery;

CONSIDERING their commitment to strengthen cooperation in the field of justice, freedom and

security, including in the fight against corruption;

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CONSIDERING their commitment to contribute, through their cooperation, to sustainable political,

socioeconomic and institutional development;

CONSIDERING their willingness to strengthen their economic relationship based on the principles

of a free-market economy and to create a climate conducive to expanding bilateral trade and

investment relations and mutually advantageous connectivity;

SUPPORTING the Republic of Uzbekistan's achievements and efforts to improve the business

climate, to fight corruption, create economic growth and employment;

ENCOURAGING the Republic of Uzbekistan's accession to the World Trade Organisation

(hereinafter referred to as the "WTO"), and the transparent and non-discriminatory implementation

of rights and obligations in the framework of the WTO, and confirming the intention of the

European Union to provide technical assistance in this process, including in the field of norms and

standards certification, intellectual property protection legislation and law enforcement practices;

CONSIDERING their commitment to respect the principle of sustainable development and to

working together in pursuit of the objectives of the UN 2030 Agenda for Sustainable Development;

CONSIDERING their commitment to ensure environmental sustainability and protection, including

through transboundary cooperation and the implementation of multilateral environmental

agreements to which they are parties, and strengthening cooperation in all areas of climate action in

line with the Paris Agreement under the United Nations Framework Convention on Climate Change

adopted on 12 December 2015 (hereinafter referred to as the "Paris Agreement on climate change");

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RECOGNISING that all cooperation in the peaceful uses of nuclear energy between the Parties to

this Agreement is governed by the Agreement for cooperation in the peaceful uses of nuclear

energy between the European Atomic Energy Community (Euratom) and the Government of the

Republic of Uzbekistan, signed in Brussels on 6 October 2003, and does not fall under this

Agreement;

CONSIDERING their desire to expand the cooperation and exchange in the field of science and

technology, innovation and education, culture and sport;

CONSIDERING their commitment to promote cross-border and regional cooperation;

NOTING that the special position of Ireland under Protocol No 21 on the position of the United

Kingdom and Ireland in respect of the area of freedom, security and justice, annexed to the Treaty

on European Union and to the Treaty on the Functioning of the European Union, and the special

position of Denmark under Protocol No 22 on the position of Denmark, annexed to those Treaties,

will be reflected in this Agreement, where appropriate;

HAVE AGREED AS FOLLOWS:

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TITLE I

OBJECTIVES AND GENERAL PRINCIPLES

ARTICLE 1

Objectives

1. This Agreement establishes an enhanced partnership and cooperation between the Parties,

based on shared values, on common interests and on the ambition to strengthen their relationship in

all areas of its application, to their mutual benefit.

2. This partnership and cooperation is a process between the Parties that contributes to

sustainable development, peace, stability and security, through increased convergence on foreign

and security policy, effective political and economic cooperation and multilateralism.

ARTICLE 2

General Principles

1. Respect for democratic principles and human rights and fundamental freedoms, as laid down

in particular in the Universal Declaration of Human Rights, the UN Charter, the OSCE Helsinki

Final Act and other relevant international human rights instruments to which they are party

underpins the internal and international policies of both Parties and constitutes an essential element

of this Agreement.

& /en 6

2. The Parties reiterate their commitment to international labour standards in accordance with

the conventions of the International Labour Organization (hereinafter referred to as the "ILO") to

which they are or may become parties.

3. The Parties reaffirm their respect for the principles of good governance, including the fight

against corruption at all levels.

4. The Parties reiterate their commitment to the principles of a free-market economy, promoting

sustainable development and the fight against climate change.

5. The Parties commit themselves to the fight against the different forms of transnational

organised crime and terrorism, the fight against the proliferation of WMD and their means of

delivery, and to effective multilateralism.

6. The Parties shall implement this Agreement based on shared values, the principles of equal

dialogue, mutual trust, respect and benefit, regional cooperation, effective multilateralism and

respect for their international obligations arising from, in particular, their membership of the UN

and the OSCE.

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TITLE II

POLITICAL DIALOGUE AND REFORM;

COOPERATION IN THE FIELD OF FOREIGN AND SECURITY POLICY

ARTICLE 3

Aims of political dialogue

The Parties shall develop effective political dialogue in all areas of mutual interest, including

foreign and security policy and internal reform. The aims of the political dialogue shall be:

(a) to increase the effectiveness of political cooperation and convergence on foreign and security

policy and to promote, preserve and strengthen peace and regional and international stability

and security on the basis of effective multilateralism;

(b) to strengthen sustainable political, socio-economic and institutional development;

(c) to strengthen the respect for democratic principles, the rule of law and good governance,

human rights and fundamental freedoms, and to increase cooperation in these areas;

(d) to develop dialogue and deepen cooperation in the field of security and defence;

(e) to promote the peaceful resolution of disputes and the principles of territorial integrity,

inviolability of borders, sovereignty and independence; and

(f) to further improve the conditions for regional cooperation.

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ARTICLE 4

Democracy and the rule of law

The Parties shall enhance dialogue and cooperation with the aim of:

(a) ensuring respect for democratic principles and the rule of law as well as further strengthening

the stability, effectiveness and accountability of democratic institutions;

(b) supporting efforts in implementing judicial and legal reforms to ensure the effective

functioning of institutions in the field of law enforcement and justice, access to justice and the

right to a fair trial, independence, accountability and efficiency of the judicial system as well

as strengthening the procedural safeguards in criminal matters and victims' and witnesses'

rights;

(c) promoting e-governance and pursuing public administration reform to build accountable,

efficient and transparent governance at all levels;

(d) support in strengthening electoral processes and capacities of electoral management bodies;

and

(e) ensuring effectiveness in the fight against corruption at all levels.

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ARTICLE 5

Human rights and fundamental freedoms

The Parties shall cooperate in the promotion and protection of human rights and fundamental

freedoms, and enhance dialogue and cooperation with the aim of:

(a) ensuring and promoting the respect for human rights, and the rights of persons belonging to

ethnic, religious and linguistic minorities and vulnerable groups such as persons with

disabilities, as well as combating violence and all forms of discrimination;

(b) ensuring and promoting the protection of children from violence, exploitation and abuse;

(c) ensuring the protection and promotion of human rights and fundamental freedoms, both civil

and political rights as well as economic, social and cultural rights, including freedom of

expression and of the media, freedom of peaceful assembly and of association, freedom from

torture and ill treatment, and freedom of religion or belief;

(d) promoting economic, social and cultural rights and effective enforcement of labour standards

in accordance with ILO conventions to which they are or may become parties;

(e) eliminating violence against women and girls and ensuring gender equality, women's and

girls' meaningful participation and empowerment;

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(f) strengthening national human rights institutions, including through their meaningful

participation in the decision-making processes; and

(g) strengthening cooperation within the United Nations human rights bodies and Special

Procedures and effectively implementing their recommendations.

ARTICLE 6

Civil society

The Parties shall cooperate to strengthen an enabling environment for civil society and its role in

economic, social and political development of an open democratic society, in particular by:

(a) strengthening capacity, independence and accountability of civil society organisations;

(b) fostering civil society engagement in law- and policy-making processes, by establishing an

open, transparent and regular dialogue between, on the one hand, public institutions and, on

the other, representatives of civil society;

(c) strengthening contacts, exchange of information and experiences between all sectors of civil

society in the European Union and in the Republic of Uzbekistan; and

(d) ensuring the involvement of civil society in the relations between the Parties, including in

implementing this Agreement.

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ARTICLE 7

Foreign and security policy

1. The Parties reaffirm their commitment to the universal principles and norms of international

law, including those enshrined in the UN Charter and the OSCE Helsinki Final Act, inter alia the

principles of: sovereign equality, respect for the rights inherent in sovereignty; refraining from the

threat or use of force; inviolability of frontiers; territorial integrity of States; peaceful settlement of

disputes; non-intervention in internal affairs; respect for human rights and fundamental freedoms,

including the freedom of thought, conscience, religion or belief; equal rights and self-determination

of peoples; cooperation among States; and fulfilment in good faith of obligations under

international law.

2. The Parties shall intensify their dialogue and cooperation in the area of foreign and security

policy, including aspects of security and defence policy, and shall address, in particular, issues of

conflict prevention and enhanced and effective crisis management, risk reduction, cybersecurity,

efficient functioning of the security sector, regional stability, disarmament, non-proliferation, arms

control and export control.

ARTICLE 8

Serious crimes of international concern

1. The Parties reaffirm that the most serious crimes of concern to the international community as

a whole must not go unpunished and that their effective prosecution must be ensured by taking

measures at the national level and by enhancing international cooperation.

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2. The Parties consider that the establishment and functioning of the International Criminal

Court and other multilateral structures contribute to the promotion of international peace and

justice. The Parties shall cooperate including through a dialogue in this respect.

3. The Parties shall cooperate in conducting a dialogue on issues relating to genocide, crimes

against humanity and war crimes by making use of applicable bilateral and multilateral frameworks.

ARTICLE 9

Conflict prevention and crisis management

The Parties shall cooperate in conflict prevention and crisis management in order to create an

environment of peace and stability.

ARTICLE 10

Regional stability and peaceful resolution of conflicts

1. The Parties shall intensify their joint efforts to improve conditions for further regional

cooperation in key areas such as sustainable management of transboundary water, mineral and

energy resources, border management that facilitates legitimate cross-border flows of persons and

goods, sustainable connectivity, good neighbourly relations and democratic and sustainable

development, thereby contributing to stability and security in Central Asia, and shall work towards

the peaceful settlement of conflicts.

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2. The efforts referred to in paragraph 1 shall follow the objective of maintaining international

peace and security, as enshrined in the UN Charter, the OSCE Helsinki Final Act and other relevant

multilateral instruments to which the European Union and the Republic of Uzbekistan are parties.

ARTICLE 11

Countering proliferation of WMD

1. The Parties consider that the proliferation of WMD and their means of delivery, both to state

and non-state actors, represents one of the most serious threats to international stability and security.

2. The Parties shall cooperate and contribute to countering the proliferation of WMD and their

means of delivery through full compliance with and implementation of their respective obligations

under international disarmament and non-proliferation treaties and agreements and other relevant

international instruments to which they are parties. The Parties agree that this provision constitutes

an essential element of this Agreement.

3. The Parties shall furthermore cooperate and contribute to countering the proliferation of

WMD and their means of delivery by:

(a) taking steps to sign, ratify, or accede to, as appropriate, and fully implement all other relevant

international instruments;

(b) the establishment of an effective system of national export controls, controlling the export as

well as transit of WMD related goods, including a WMD end-use control on dual use

technologies and containing effective sanctions for breaches of export controls.

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4. The Parties shall establish a regular dialogue to accompany and consolidate these elements.

ARTICLE 12

Small arms and light weapons and conventional arms exports control

1. The Parties recognise that the illicit manufacture, transfer and circulation of small arms and

light weapons (hereinafter referred to as "SALW"), including their ammunition, and their excessive

accumulation, poor management, inadequately secured stockpiles and uncontrolled spread continue

to pose a serious threat to peace and international security.

2. The Parties shall observe and fully implement their obligations to deal with the illicit trade in

SALW, including their ammunition, under UN Security Council resolutions, as well as their

commitments within the framework of the UN Programme of Action to Prevent, Combat and

Eradicate the Illicit Trade in SALW in All Its Aspects and international treaties and agreements to

which they are parties.

3. The Parties recognise the importance of domestic control systems for the transfer of

conventional arms in line with existing international standards to which they are party. The Parties

recognise the importance of applying such controls in a responsible manner, as a contribution to

international and regional peace, security and stability, and to the reduction of human suffering, as

well as to the prevention of diversion of conventional weapons.

4. The Parties shall encourage cooperation and coordination, complementarity and joint actions

in their efforts to regulate or to improve the regulation of international trade in conventional arms

and to prevent, combat and eradicate the illicit trade in arms including through conducting regular

dialogue.

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TITLE III

JUSTICE, FREEDOM AND SECURITY

ARTICLE 13

Protection of Personal Data

1. The Parties recognise the importance of ensuring and promoting fundamental rights to privacy

and the protection of personal data.

2. The Parties shall cooperate to ensure a high level of protection and the effective enforcement

of the rights referred to in paragraph 1, including in the context of law enforcement agencies in

order to prevent and combat international terrorism and other transnational crimes.

3. The Parties recognise that ensuring the protection of personal data is one of the fundamental

factors in the further development of economic and trade relations, and in establishing citizens' trust

in the digital economy.

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4. The cooperation of the Parties shall include practical assistance in the harmonisation of their

respective legislation in the sphere of the protection of personal data, taking into account European

Union and international legal instruments and standards, including the Council of Europe

Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data1,

as well as cooperation in the enforcement of data protection rules.

ARTICLE 14

Cooperation on migration, asylum and border management

1. The Parties reaffirm the importance of establishing a comprehensive dialogue on all issues

related to migration, including legal migration in line with the European Union and national

competences, root causes of illegal migration, international protection and the prevention of and the

fight against illegal migration, migrant smuggling and trafficking in human beings.

2. Cooperation shall be based on a specific needs-assessment conducted through mutual

consultation between the Parties and shall be implemented in accordance with their relevant

legislation. It shall, in particular, focus on:

(a) addressing the root causes of illegal migration;

(b) the development and implementation of national legislation and practices as regards

international protection in line with universal principles and standards, and ensuring the

respect for the principle of "non refoulement";

1 Done on 28 January 1981, and its Additional Protocol to the Convention for the Protection of

Individuals with regard to Automatic Processing of Personal Data regarding supervisory

authorities and transborder data flows done on 8 November 2001.

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(c) acknowledging the relevance of the New York Declaration for Refugees and Migrants1 and

strengthening international and regional cooperation, within the framework of the United

Nations and relevant regional fora;

(d) the admission rules and rights and status of persons admitted, fair treatment and integration of

lawfully residing non-nationals, education and training and measures against racism and

xenophobia;

(e) the establishment of an effective and preventive policy against illegal migration, the

smuggling of migrants and trafficking in human beings in line with the United Nations

Convention Against Transnational Organised Crime2 and its Protocols which have entered

into force for the Parties, including the issue of how to combat networks of smugglers, disrupt

criminal networks involved in trafficking in human beings and protect the victims of

trafficking;

(f) issues such as organisation, training, best practices and other operational measures to tackle

migration-related challenges, notably illegal migration, document security, visa policy with

the aim of facilitating citizens' mobility, and border management and migration information

systems; and

(g) issues relating to labour activities and the protection of the rights of legal migrants and their

family members in accordance with international norms.

1 Adopted by the UN General Assembly resolution A/RES/71/1 on 19 September 2016. 2 Adopted by the UN General Assembly resolution A/RES/55/25 on 8 January 2001.

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ARTICLE 15

Readmission and fight against illegal migration

1. In the framework of their cooperation to prevent and tackle illegal migration, the Parties agree

that:

(a) the Republic of Uzbekistan shall readmit any of its nationals who do not, or who no longer,

fulfil the conditions in force for entry to, presence in, or residence on the territory of a

Member State of the European Union, upon request by the latter and without undue delay;

(b) each Member State of the European Union shall readmit any of its nationals who do not, or

who no longer, fulfil the conditions in force for entry to, presence in, or residence on the

territory of the Republic of Uzbekistan, upon request by the latter and without undue delay;

and

(c) the Member States of the European Union and the Republic of Uzbekistan shall provide their

nationals with appropriate travel documents for such purposes within thirty days from the date

of submission, including by electronic means, of the readmission application by the

requesting Party, drawn up according to the model in Annex [x] (including where possible

documents proving citizenship).

When the travel document has not been issued within this time limit, the Parties may make use of

the "travel document of the EU for the return of illegally staying third country nationals"

(Regulation (EU) 2016/1953 of the European Parliament and of the Council) or the similar travel

document of the Republic of Uzbekistan.

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Where the person to be readmitted does not possess any documents or other proofs of his or her

nationality, the competent diplomatic and consular representations of the Member State of the

European Union concerned or the Republic of Uzbekistan shall, upon request by the Republic of

Uzbekistan or the Member State of the European Union concerned, provide full cooperation in

order to establish his or her nationality.

2. The Parties may consider the possible negotiation of:

(a) an agreement between the European Union and the Republic of Uzbekistan regulating specific

procedures and obligations for Member States of the European Union and of the Republic of

Uzbekistan on readmission;

(b) an agreement on visa facilitation for citizens of the European Union and the Republic of

Uzbekistan.

ARTICLE 16

Anti-Money Laundering and Combating Financing of Terrorism

1. The Parties shall cooperate with a view to preventing and effectively combating the use of

their financial institutions and designated non-financial businesses and professions for the purposes

of money laundering or terrorist financing.

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2. To that end, they shall exchange information within the framework of their respective

legislation and cooperate to ensure the effective and full implementation of the Financial Action

Task Force (hereinafter referred to as "FATF") recommendations and other standards adopted by

relevant international bodies active in this area. Such cooperation may include, among others,

identification, tracing, seizure, confiscation and recovery of assets or funds derived from the

proceeds of crime. For this exchange of information, the Parties shall use secure and reliable

channels, such as the ones outlined in the Egmont Group of Financial Intelligence Units Charter and

principles for information exchange.

ARTICLE 17

Illicit drugs

1. The Parties shall cooperate to ensure a balanced, evidence-based and integrated approach

towards illicit drugs as well as new psychoactive substances.

2. Drug-related policies and actions shall be aimed at reinforcing structures to prevent and

address illicit drugs, reduce the supply of, trafficking in, and demand for illicit drugs, and cope with

the health and social consequences of the use of illicit drugs with a view to reducing harm. The

Parties shall cooperate to prevent the diversion of chemical precursors used for the illicit

manufacture of narcotic drugs and psychotropic and new psychoactive substances.

3. The Parties shall agree on the necessary methods of cooperation to attain the objectives

referred to in paragraph 1. Actions shall be based on commonly agreed principles set out in UN

drug control conventions and other international agreements, to which they are party.

& /en 21

ARTICLE 18

Fight against organised crime and corruption

1. The Parties shall cooperate in combating and preventing criminal and illegal activities,

including transnational activities, organised or otherwise, such as:

(a) smuggling of migrants;

(b) trafficking in human beings;

(c) smuggling and trafficking in firearms including SALW;

(d) smuggling and trafficking illicit drugs, psychotropic substances, and precursors;

(e) smuggling and trafficking in goods;

(f) illegal economic and financial activities such as counterfeiting, parallel imports and

infringement of intellectual property rights, fiscal fraud and public procurement fraud;

(g) embezzlement in projects funded by international donors;

(h) all forms of corruption, in both the private and public sector;

(i) forging documents and submitting false statements; and

(j) cybercrime.

& /en 22

2. The Parties shall enhance bilateral, regional and international cooperation among

law enforcement bodies. The Parties shall implement effectively the relevant international

standards, in particular those enshrined in the UN Convention Against Transnational Organised

Crime of 2000 and the Protocols thereto to which they are party.

3. The Parties shall cooperate in preventing and fighting corruption in line with relevant

international standards, in particular those enshrined in the UN Convention Against Corruption and

the recommendations arising from assessments against this convention.

ARTICLE 19

Counter-terrorism

1. The Parties reaffirm the importance of the fight against and the prevention of terrorism, and

agree to work together at bilateral, regional and international level to prevent and combat terrorism

in all its forms and manifestations.

2. The Parties agree that it is essential that the fight against terrorism be conducted with full

respect for the rule of law and in strict conformity with international law, including international

humanitarian law, the principles of the UN Charter, and all relevant international counter-terrorism-

related and human rights instruments to which they are party.

3. The Parties stress the importance of the universal ratification and implementation of all

relevant UN counter-terrorism-related treaties. The Parties agree to promote dialogue on the draft

Comprehensive Convention on International Terrorism and to cooperate in the implementation of

the UN Global Counter-Terrorism Strategy, as well as all relevant UN Security Council resolutions.

& /en 23

4. The Parties reaffirm the importance of a law enforcement and judicial approach to the fight

against terrorism, and agree to cooperate in the prevention and suppression of terrorism, in

particular by:

(a) exchanging information on terrorist groups and individuals and their support networks, in

accordance with international and national law, inter alia as regards data protection and the

protection of privacy;

(b) exchanging experience with regard to the prevention and suppression of terrorism, means and

methods and their technical aspects, as well as training, in accordance with applicable law;

(c) exchanging views on radicalisation and recruitment, and ways to counter radicalisation, and

promote de-radicalisation and rehabilitation;

(d) exchanging views and experience concerning cross-border movement and travel of terrorist

suspects as well as terrorist threats;

(e) sharing best practices as regards the protection of human rights in the fight against terrorism,

in particular in relation to criminal proceedings;

(f) ensuring the criminalisation of terrorist offences and taking measures to counter the financing

of terrorism; and

(g) taking measures against the threat of chemical, biological, radiological and nuclear terrorism,

and undertaking necessary measures to prevent the acquisition, transfer and use for terrorist

purposes of chemical, biological, radiological and nuclear materials as well as to prevent

illegal acts against high-risk chemical, biological, radiological and nuclear facilities.

& /en 24

5. Cooperation shall be based on relevant available assessments and conducted through mutual

consultation between the Parties.

ARTICLE 20

Judicial cooperation

1. The Parties shall enhance existing cooperation on mutual legal assistance and extradition on

the basis of international agreements to which they are party. The Parties shall strengthen existing

mechanisms and, where appropriate, consider the development of new mechanisms to facilitate

international cooperation in this area.

2. The Parties shall develop judicial cooperation on mutual legal assistance in civil, commercial,

and criminal matters, in particular the negotiation, conclusion, and implementation of bilateral

agreements and multilateral conventions on criminal judicial cooperation and multilateral

conventions on civil judicial cooperation, including the Conventions of The Hague Conference on

Private International Law.

& /en 25

ARTICLE 21

Consular Protection

The Republic of Uzbekistan accepts that the diplomatic and consular authorities of any Member

State of the European Union which has a permanent representation in the Republic of Uzbekistan

may provide protection to any national of a Member State of the European Union which does not

have a permanent representation in the Republic of Uzbekistan in a position to effectively provide

consular protection in a given case, on the same conditions as to nationals of that Member State of

the European Union.

& /en 26

TITLE IV

TRADE AND TRADE RELATED MATTERS

CHAPTER 1

HORIZONTAL PROVISIONS

ARTICLE 22

Objectives

The objectives of this Title are:

(a) the expansion, diversification and facilitation of trade between the Parties in particular

through provisions on the facilitation of customs procedures and trade, the reduction of

technical barriers to trade as well as those related to sanitary and phytosanitary measures,

while preserving the right of each Party to legislate in order to achieve public policy

objectives;

(b) the facilitation of trade in services and investment between the Parties including through the

free transfer of current payments and facilitation of capital movements;

(c) the effective and reciprocal opening of government procurement markets of the Parties;

& /en 27

(d) the promotion of innovation and creativity by ensuring an adequate and effective protection of

all intellectual property rights;

(e) the promotion of conditions fostering undistorted competition in the economic activities of the

Parties in particular with regard to trade and investment between them;

(f) the development of international trade in a manner that contributes to sustainable

development in its economic, social and environmental dimensions;

(g) the establishment of an effective, fair and predictable dispute settlement mechanism to solve

disputes on the interpretation and application of this Title.

ARTICLE 23

Definitions

For the purposes of this Title:

(a) "Agreement on Agriculture" means the Agreement on Agriculture, contained in Annex 1A to

the WTO Agreement;

(b) "Agreement on Import Licensing Procedures" means the Agreement on Import Licensing

Procedures, contained in Annex 1A to the WTO Agreement;

(c) "Anti-Dumping Agreement" means the Agreement on Implementation of Article VI of

GATT 1994, contained in Annex 1A to the WTO Agreement;

& /en 28

(d) "days" means calendar days, including weekends and holidays;

(e) "Energy Charter Treaty" means the Energy Charter Treaty, done at Lisbon

on 17 December 1994;

(f) "existing" means in effect on the date of entry into force of this Agreement;

(g) "GATT 1994" means the General Agreement on Tariffs and Trade 1994, contained in

Annex 1A to the WTO Agreement;

(h) "GATS" means the General Agreement on Trade in Services, contained in Annex 1B to the

WTO Agreement;

(i) "measure" includes any measure whether in the form of a law, regulation, rule, procedure,

decision, administrative action, or in any other forms.1

(j) "measures of a Party" means any measures adopted or maintained by:2

(i) central, regional or local governments or authorities; and

(ii) non-governmental bodies in the exercise of powers delegated by central, regional or

local governments or authorities;

1 For greater certainty, the term measure includes failures to act. 2 For greater certainty, "measures of a Party" covers measures by entities listed in point (j)(i)

and (ii) which are adopted or maintained by instructing, directing or controlling, either

directly or indirectly, the conduct of other entities with regard to those measures.

& /en 29

(k) "person" means a natural person or a legal person;

(l) "Revised Kyoto Convention" means the International Convention on the Simplification and

Harmonisation of Customs Procedures, done at Kyoto on 18 May 1973, as amended;

(m) "Safeguards Agreement" means the Agreement on Safeguards, contained in Annex 1A to the

WTO Agreement;

(n) "SCM Agreement" means the Agreement on Subsidies and Countervailing Measures,

contained in Annex 1A to the WTO Agreement;

(o) "SPS Agreement" means the Agreement on the Application of Sanitary and Phytosanitary

Measures, contained in Annex 1A to the WTO Agreement;

(p) "TBT Agreement" means the Agreement on Technical Barriers to Trade, contained in Annex

1 A to the WTO Agreement;

(q) "third country" means a country or territory outside the geographic scope of application of

this Agreement;

(r) "Trade Facilitation Agreement" means the Agreement on Trade Facilitation, contained in

Annex 1A of the WTO Agreement;

(s) "TRIPS Agreement" means the Agreement on Trade-Related Aspects of Intellectual Property

Rights, contained in Annex 1C to the WTO Agreement;

& /en 30

(t) "Vienna Convention on the Law of Treaties" means the Vienna Convention on the Law of

Treaties, done at Vienna on 23 May 1969;

(u) "World Customs Organization's Arusha Declaration" means the Declaration of the Customs

Co-operation Council concerning integrity in Customs done at Arusha, Tanzania,

on 7 July 1993;

(v) "WTO Agreement" means the Marrakesh Agreement Establishing the World Trade

Organization, done on 15 April 1994;

(w) "WTO " means the World Trade Organization.

ARTICLE 24

Relation to other international agreements

1. The Parties affirm their rights and obligations with respect to each other under the

international agreements to which they are both party.

2. Nothing in this Agreement shall be construed as requiring a Party to act in a manner

inconsistent with its obligations under the WTO Agreement.

& /en 31

ARTICLE 25

References to laws and regulations and other agreements

1. Any reference in this Title to laws and regulations, either generally or by reference to a

specific statute, regulation or directive, shall be construed as a reference to the laws and regulations

as amended, unless indicated otherwise.

2. Any reference, or incorporation by means of a reference, in this Title, to other agreements or

legal instruments in whole or in part, shall be construed, unless indicated otherwise, as including:

(a) related annexes, protocols, footnotes, interpretative notes and explanatory notes; and

(b) successor agreements to which the Parties are party or amendments that are binding on the

Parties, except where the reference affirms existing rights.

ARTICLE 26

Right of action under domestic law

A Party shall not provide for a right of action under its law against the other Party on the grounds

that a measure of the other Party is inconsistent with this Agreement.

& /en 32

ARTICLE 27

Specific tasks of the Cooperation Council acting in its trade configuration

1. When the Cooperation Council performs any of the tasks conferred upon it relating to this

Title, it shall be composed of representatives of the Parties with responsibility for trade-related

matters, in accordance with the Parties' respective legal frameworks, or by their designees.

2. The Cooperation Council acting in its trade configuration:

(a) shall have the power to adopt decisions in order to amend the following on the basis of mutual

consent and following the completion of the Parties' respective internal procedures as

provided for in their legislation.

(i) Annexes 5-A, 5-B, 5-C and 5-D;

(ii) Annex 6;

(iii) Annexes 7-A, 7-B and 7-C;

(iv) Annex 9-A;

(v) Annexes 14-A and 14-B;

(vi) Protocol I.

(b) may adopt decisions to issue interpretation of this Title;

& /en 33

(c) may establish subcommittees composed of representatives of the Parties, in addition to those

established by this Title and to assign them responsibilities within the limits of its own

competence, including the modification of the assigned functions or the dissolution of the

established sub-committee.

3. The amendments referred to in paragraph 2(a) shall be confirmed by an exchange of

diplomatic notes between the Parties and enter into force upon receipt of the last note, unless

otherwise agreed by the Parties.

4. The Cooperation Council acting in its trade configuration shall take decisions and make

appropriate recommendations following the completion of the Parties' respective internal

procedures, as provided for in their legislation.

5. When meetings of the Cooperation Council are not available, the decisions referred to in

paragraph 2 may be taken by written procedure.

ARTICLE 28

Specific tasks of the Cooperation Committee acting in its trade configuration

1. When the Cooperation Committee performs any of the tasks conferred upon it in this Title, it

shall be composed of representatives of the Parties with responsibility for trade-related matters, or

their designees.

& /en 34

2. The Cooperation Committee acting in its trade configuration shall have, in particular, the

following tasks:

(a) assist the Cooperation Council in the performance of its tasks with regard to trade-related

matters;

(b) monitor the proper implementation and application of this Title; in this respect, and without

prejudice to the rights established in Chapter 14, either Party may refer for discussion within

the Cooperation Committee any issue relating to the application or interpretation of this Title;

(c) oversee, as necessary, the further development of this Title and evaluate the results obtained

from its application;

(d) seek appropriate ways for preventing and resolving issues which might arise in areas covered

by this Title; and

(e) supervise the work of the subcommittees established under this Title.

3. In the performance of its tasks under paragraph 2, the Cooperation Committee may make

proposals for the adoption of amendments referred to in point (a) of paragraph 2 of Article 27 or

issue interpretations as referred to in point (b) of paragraph 2 of Article 27 when meetings of the

Cooperation Council are not available.

4. The Cooperation Committee, acting in its trade configuration, shall adopt decisions and make

appropriate recommendations following the completion of the Parties' respective internal

procedures, as provided in their legislation.

& /en 35

ARTICLE 29

Coordinators

1. Each Party shall appoint a coordinator for this Title, within sixty days after the entry into

force of this Agreement, and notify each other of the contact details.

2. The coordinators shall jointly establish the agenda for the meetings of the Cooperation

Council and the Cooperation Committee in accordance with this Chapter, conduct all other

necessary preparations and follow up on the decisions of such bodies, as appropriate.

ARTICLE 30

Sub-Committees

1. The sub-committees shall be composed of representatives of the European Union, on the one

part, and of the Republic of Uzbekistan, on the other part.

2. The sub-committees shall meet within a year of the date of entry into force of this Agreement

and, thereafter, once per year or at the request of a Party or of the Cooperation Committee, at an

appropriate level. Meetings may also be held by any technological means available to the Parties.

When in person, meetings shall be held alternately in Brussels or Tashkent.

3. The Sub-Committees shall be co-chaired by representatives of both Parties.

& /en 36

CHAPTER 2

TRADE IN GOODS

ARTICLE 31

Scope

Except as otherwise provided in this Agreement, this Chapter applies to trade in goods of a Party.

ARTICLE 32

Definitions

For the purposes of this Chapter:

(a) "consular transactions" means the procedure of obtaining from a consul of the importing

Party in the territory of the exporting Party, or in the territory of a third party, a consular

invoice or a consular visa for a commercial invoice, certificate of origin, manifest, shipper's

export declaration or any other customs documentation in connection with the importation of

a good;

& /en 37

(b) "customs duty" means a duty or charge of any kind imposed on or in connection with the

importation of a good; it does not include any:

(i) charge equivalent to an internal tax imposed in accordance with Article 34 of this

Agreement;

(ii) anti-dumping, special safeguard, countervailing or safeguard duty applied in accordance

with GATT 1994, the Anti-dumping Agreement, the Agreement on Agriculture, the

SCM Agreement and the Safeguards Agreement, respectively; and

(iii) fee or other charge imposed on or in connection with the importation that is limited in

amount to the approximate cost of the services rendered.

(c) "export licensing procedure" means an administrative procedure requiring the submission of

an application or other documentation (other than that generally required for customs

clearance purposes) to the relevant administrative body or bodies as a prior condition for

exportation from the customs territory of the exporting Party.

(d) "good of a Party" means a domestic good as understood in GATT 1994.

(e) "Harmonised System" or "HS" means the Harmonized Commodity Description and Coding

System, including all legal notes and amendments thereto developed by the World Customs

Organization.

(f) "import licensing procedure" means an administrative procedure requiring the submission of

an application or other documentation (other than that generally required for customs

clearance purposes) to the relevant administrative body or bodies as a prior condition for

importation into the customs territory of the importing Party.

& /en 38

(g) "repair" means any processing operation undertaken on a good to remedy operating defects

or material damage and entailing the re-establishment of the good to its original function or to

ensure compliance with technical requirements for its use, without which the good could no

longer be used in the normal way for the purposes for which it was intended. Repair of goods

includes restoration and maintenance but does not include an operation or processing that:

(i) destroys the essential characteristics of a good, or creates a new or commercially

different good;

(ii) transforms an unfinished good into a finished good; or

(iii) is used to improve or upgrade the technical performance of goods.

ARTICLE 33

Most-favoured-nation-treatment

1. Each Party shall accord most–favoured-nation-treatment to goods of the other Party in

accordance with Article I of GATT 1994, which is incorporated into and made part of this

Agreement, mutatis mutandis.

2. Paragraph 1 shall not apply in respect of preferential treatment accorded by either Party to

goods of a third country in accordance with the GATT 1994.

& /en 39

ARTICLE 34

National treatment on internal taxation and regulation

Each Party shall accord national treatment to the goods of the other Party in accordance with

Article III of GATT 1994, including its Notes and Supplementary Provisions. To this end,

Article III of GATT 1994 and its Notes and Supplementary Provisions are incorporated into and

made part of this Agreement, mutatis mutandis.

With respect to the Republic of Uzbekistan for tobacco products, alcoholic beverages and white

sugar without flavouring or colouring additives, this Article shall apply ten years after the date of

entry into force of this Agreement or on the date on which the Republic of Uzbekistan becomes a

WTO Member, whichever comes first.

ARTICLE 35

Import and export restrictions

Neither Party shall adopt or maintain any prohibition or restriction on the importation of any good

of the other Party, or on the exportation or sale for export of any good destined for the territory of

the other Party, except in accordance with Article XI of GATT 1994, including its Notes and

Supplementary Provisions. To this end, Article XI of GATT 1994 and its Notes and Supplementary

Provisions are incorporated into and made part of this Agreement, mutatis mutandis.

& /en 40

ARTICLE 36

Export duties, taxes or other charges

1. In the interest of the development of their trade partnership and to further facilitate their

trading opportunities, the Parties endeavour not to introduce any new duty, tax or other charge of

any kind imposed on, or in connection with, the exportation of a good to the other Party, or any

internal tax or other charge on a good exported to the other Party that is in excess of the tax or

charge that would be imposed on like goods when destined for domestic consumption or any other

measures having an equivalent effect.

2. Where a Party grants a more favourable treatment regarding export duties, taxes or any other

charges to its exports to another third Party, that Party shall extend the same treatment to exports

destined for the other Party.

2. In exceptional circumstances, a Party can apply a measure referred to in paragraph 1 of this

Article to the other Party. The Party applying such measure publishes on its official website relevant

information 60 days prior to the entry into force of such measure, including the expected duration of

application.

ARTICLE 37

Dual-use export controls

The Parties agree to exchange information and good practices on dual-use export controls with a

view to promoting the cooperation of the European Union and of the Republic of Uzbekistan export

controls.

& /en 41

ARTICLE 38

Fees and formalities

1. Fees and other charges imposed by a Party on or in connection with importation or

exportation of a good of the other Party shall be limited in amount to the approximate cost of

services rendered and shall not represent an indirect protection to domestic goods or taxation of

imports or exports for fiscal purposes.

2. Each Party shall promptly publish all fees and charges it imposes in connection with

importation or exportation in such a manner as to enable governments, traders and other interested

parties, to become acquainted with them.

3. Neither Party shall require consular transactions, including related fees and charges, in

connection with the importation of any good of the other Party.

ARTICLE 39

Repaired goods

1. Neither Party shall apply a customs duty to a good, regardless of its origin, that re-enters the

Party's customs territory after that good has been temporarily exported from its customs territory to

the customs territory of the other Party for repair.

2. Paragraph 1 does not apply to a good imported in bond, into free trade zones, or in similar

status, that is then exported for repair and is not re-imported in bond, into free trade zones, or in

similar status.

& /en 42

3. Neither Party shall apply a customs duty to a good, regardless of its origin, imported

temporarily from the customs territory of the other Party for repair.

ARTICLE 40

Temporary admission of goods

A Party shall grant the other Party exemption from import charges and duties on goods admitted

temporarily, in the instances and in accordance with the procedures stipulated by any international

convention on the temporary admission of goods binding upon it. This exemption shall be applied

pursuant to the legislation of each Party.

ARTICLE 41

Transit

Article V of GATT 1994, is incorporated into and made part of this Agreement.

The Parties shall take all necessary measures to facilitate the transit of energy goods, in accordance

with the principle of freedom of transit, and with Article 7 of the Energy Charter Treaty.

& /en 43

ARTICLE 42

Origin marking

1. Where the Republic of Uzbekistan requires a mark of origin on the goods imported from the

European Union, it shall accept the "Made in EU" origin marking or the equivalent in a language in

accordance with the Republic of Uzbekistan origin marking requirements under conditions that are

no less favourable than those applied to marks of origin of Member States of the European Union.

2. For the purposes of the origin mark "Made in EU", the Republic of Uzbekistan shall treat the

European Union as a single territory.

ARTICLE 43

Import licensing procedures

1. Each Party shall adopt and administer any import licensing procedures in accordance with

Articles 1 to 3 of the WTO Agreement on Import Licensing Procedures. To this end, Articles 1 to 3

of the Agreement on Import Licensing Procedures are incorporated into and made part of this

Agreement, mutatis mutandis.

& /en 44

2. A Party that institutes licensing procedures, or changes to existing licensing procedures, shall

notify it the other Party within 90 days of publication. The notification shall include the information

specified in Article 5(2) of the Agreement on Import Licensing Procedures. A Party shall be

deemed to be in compliance with this provision if it has notified the relevant import licensing

procedure, or any modifications thereof, to the Committee on Import Licensing provided for in

Article 4 of the Import Licensing Agreement, including the information specified in Article 5(2) of

that Agreement. For the Republic of Uzbekistan the notification obligation to the Committee on

Import Licensing shall apply from the date that the Republic of Uzbekistan becomes a WTO

Member.

3. Upon request of a Party, the other Party shall promptly provide any relevant information,

including the information specified in Article 5(2) of the Agreement on Import Licensing

Procedures, regarding any import licensing procedure that it intends to adopt, has adopted or

maintains, or changes to existing licensing procedures.

& /en 45

ARTICLE 44

Export licensing procedures1

1. Each Party shall publish any new export licensing procedure, or any modification to an

existing export licensing procedure, in such a manner as to enable governments, traders and other

interested parties to become acquainted with them. Such publication shall take place, whenever

practicable, no later than 45 days before a new export licencing procedure or any modification of

any existing export licencing procedure takes effect, and in any event no later than the date when

such procedure or modification takes effect.

2. The publication of export licensing procedures shall include the following information:

(a) the texts of the export licensing procedures, or any modifications made thereto;

(b) the goods subject to each export licensing procedure;

(c) for each procedure, a description of the process for applying for an export license and any

criteria an applicant has to fulfil to be eligible to apply for an export license, such as

possessing an activity license, establishing or maintaining an investment, or operating through

a particular form of establishment in a Party's territory;

(d) a contact point or points from which interested persons can obtain further information on the

conditions for obtaining an export license;

1 For greater certainty, nothing in this Article requires a Party to grant an export license, or

prevents a Party from implementing its obligations or commitments under UN Security

Council Resolutions, as well as under multilateral non-proliferation regimes and export

control arrangements.

& /en 46

(e) the administrative body or bodies to which an application or other relevant documentation is

to be submitted;

(f) a description of any measure or measures that the export licensing procedure is designed to

implement;

(g) the period during which each export licensing procedure will be in effect, unless the

procedure will remain in effect until it is withdrawn or revised in a new publication;

(h) if the Party intends to use an export licensing procedure to administer an export quota, the

overall quantity and, if applicable, the value of the quota and the opening and closing dates of

the quota; and

(i) any exemptions from or exceptions to the requirement to obtain an export license, how to

request or use those exemptions or exceptions, and the criteria for granting them.

3. Within 30 days after the date of entry into force of this Agreement, each Party shall notify the

other Party its existing export licensing procedures. A Party that adopts a new export licensing

procedure, or modifies any existing export licensing procedure, shall notify to the other Party the

procedure or modification within 90 days of publication. The notification shall include the reference

to the source(s) where the information required pursuant to paragraph 2 is published and include,

where appropriate, the address of the relevant official website.

& /en 47

ARTICLE 45

Trade in nuclear material

Cooperation in relation to trade in nuclear material shall be regulated by the Agreement for the

cooperation in the peaceful uses of nuclear energy between the European Atomic Energy

Community (Euratom) and the Government of the Republic of Uzbekistan of 6 October 2003.

& /en 48

CHAPTER 3

TRADE REMEDIES

ARTICLE 46

General provisions

1. The following texts are hereby incorporated into and made part of this Agreement mutatis

mutandis:

(a) Article XIX of GATT 1994

(b) the Safeguards Agreement;

(c) Article VI of GATT 1994,

(d) the Anti-Dumping Agreement; and

(e) the SCM Agreement.

2. The provisions of this Chapter shall not be subject to Chapter 14 of Title IV of this

Agreement.

& /en 49

ARTICLE 47

Transparency

Parties shall use trade defence instruments (anti-dumping, anti-subsidy and multilateral safeguards)

in full compliance with the relevant WTO requirements and on the basis of a fair and transparent

system.

Multilateral safeguards

1. The Party initiating a safeguard investigation shall notify the other Party of such initiation

provided the latter has a substantial economic interest.

2. For the purposes of this Article, a Party shall be considered as having a substantial economic

interest when it is among the five largest suppliers of the imported product during the three-year

period of time preceding the date on which the safeguard investigation was initiated, measured in

terms of either absolute volume or value.

3. Notwithstanding paragraphs 1, 2 and 4, at the request of the other Party, the Party initiating a

safeguard investigation and intending to apply safeguard measures shall

(a) provide immediately to the other Party an ad hoc written notification of all the pertinent

information leading to the initiation of a safeguard investigation and the imposition of

safeguard measures, including, where relevant, information on the initiation of a safeguard

investigation, on the provisional findings and on the final findings of the investigation,

(b) as well as offer the possibility for consultations to the other Party.

& /en 50

4. In the selection of measures under this Article, the Parties shall endeavour to give priority to

those which cause least disturbance to bilateral trade.

Anti-dumping and countervailing measures

5. The Parties shall fully and meaningfully disclose, immediately after the imposition of

provisional measures and before the final determination is made, all essential facts and

considerations which form the basis for the decision to apply measures, without prejudice to

Article 6.5 of the Anti-Dumping Agreement and Article 12.4 of the SCM Agreement. Disclosures

shall be made in writing and interested parties shall be given sufficient time to make their comments

on such essential facts and considerations.

6. Each interested Party shall be given an opportunity to be heard in order to express its views

during anti-dumping and anti-subsidy investigations, provided that this does not unnecessarily delay

the conduct of the investigations.

& /en 51

ARTICLE 48

Consideration of public interest

During the course of anti-dumping and countervailing duty investigations, the domestic industry,

consumers, users and importers shall have the right to submit relevant information and data, which

will be considered by the investigating authorities, following the relevant domestic procedural rules.

Lesser duty rule

Should a Party decide to impose an anti-dumping duty, the amount of such duty shall not exceed the

margin of dumping, but it may in principle be less than that margin if such lesser duty would be

adequate to remove the injury to the domestic industry.

& /en 52

CHAPTER 4

CUSTOMS

ARTICLE 49

Customs cooperation

1. The Parties shall strengthen cooperation in the area of customs in order to ensure a transparent

trade environment, facilitate trade, enhance supply-chain security, promote consumer safety,

prevent the flows of goods infringing intellectual property rights and fight smuggling and other

breaches of customs legislation.

2. In order to implement the objectives referred to in paragraph 1 of this Article and within the

limits of available resources, the Parties shall cooperate with a view to, inter alia:

(a) improving customs law and harmonising and simplifying customs procedures, in accordance

with international conventions and standards applicable in the field of customs and trade

facilitation, including those developed by the European Union (including Customs

Blueprints), the WTO and the World Customs Organization (in particular the Revised Kyoto

Convention);

(b) establishing modern customs systems, including modern customs clearance technologies;

provisions for authorised economic operators; automated risk-based analysis and controls;

simplified procedures for the release of goods; post-clearance controls; transparent customs

valuation and provisions for customs-to-business partnerships;

& /en 53

(c) encouraging the highest standards of integrity in the area of customs, in particular at the

border, through the application of measures reflecting the principles set out in the World

Customs Organization's Arusha Declaration;

(d) exchanging best practices and providing training and technical support for planning and

capacity building and for ensuring the highest standards of integrity;

(e) exchanging, where appropriate, relevant information and data while respecting the Parties'

rules on information confidentiality and on protection of personal data;

(f) engaging in coordinated customs actions between their customs authorities;

(g) establishing, where relevant and appropriate, mutual recognition of authorised economic

operators' programmes and customs controls, including equivalent trade facilitation measures;

(h) pursuing, where relevant and appropriate, possibilities for interconnectivity of the respective

customs transit systems.

ARTICLE 50

Mutual administrative assistance

The Parties shall provide each other with mutual administrative assistance in customs matters in

accordance with Protocol I.

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ARTICLE 51

Customs valuation

The Agreement on Implementation of Article VII of GATT 1994 contained in Annex 1A to the

WTO Agreement shall govern the customs valuation of goods in the trade between the Parties and

is hereby incorporated into and made part of this Agreement, mutatis mutandis.

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CHAPTER 5

TECHNICAL BARRIERS TO TRADE

ARTICLE 52

Objective

The objective of this Chapter is to facilitate trade in goods between the Parties by preventing,

identifying and eliminating unnecessary technical barriers to trade.

ARTICLE 53

Scope

1. This Chapter applies to the preparation, adoption and application of all standards, technical

regulations and conformity assessment procedures defined in the TBT Agreement that may affect

trade in goods between the Parties.

2. Notwithstanding paragraph 1, this Chapter does not apply to:

(a) purchasing specifications prepared by governmental bodies for production or consumption

requirements of such bodies; or

(b) sanitary and phytosanitary measures, as defined in Annex A to the SPS Agreement, which are

covered by Chapter 6.

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ARTICLE 54

Relationship with the TBT Agreement

1. Articles 2.1 to 2.8, 2.11, 2.12, 3.1, 3.4, 3.5, 4, 5.1-5.5, 5.8, 5.9, 6, 7.1, 7.4, 7.5, 8, 9, and

Annexes 1 and 3 of the TBT Agreement are hereby incorporated into and made part of this

Agreement.

2. The Republic of Uzbekistan shall complete the process of approximating its standardisation

system to the TBT Agreement, in particular the Code of Good Practice, including the voluntary

nature of standards as defined by the TBT Agreement, within 5 years of the entry into force of this

Agreement.

3. References to "this Agreement" in the TBT Agreement, as incorporated into this Agreement,

are to be read, as appropriate, as references to this Agreement between the European Union and the

Republic of Uzbekistan.

4. The term "Members" in the provisions of the TBT Agreement that are incorporated into this

Agreement shall mean the Parties to this Agreement.

ARTICLE 55

Technical regulations

1. Each Party shall carry out, in accordance with its respective rules and procedures, a regulatory

impact assessment of planned technical regulations.

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2. Each Party shall assess the available regulatory and non-regulatory alternatives to the

proposed technical regulation that may fulfil the Party's legitimate objectives, in accordance with

Article 2.2 of the TBT Agreement.

3. Each Party shall use the relevant international standards as a basis for its technical regulations

unless the Party developing the technical regulation can demonstrate that such international

standards would be an ineffective or inappropriate means for the fulfilment of the legitimate

objectives pursued.

4. International standards developed by the organisations listed in Annex 5-A shall be

considered to be the relevant international standards within the meaning of Article 2, Article 5 and

Annex 3 of the TBT Agreement provided that, in their development, these organisations have

complied with the principles and procedures set out in the Decision of the WTO Committee on

Technical Barriers to Trade on Principles for the Development of International Standards, Guides

and Recommendations with relation to Article 2, Article 5 and Annex 3 of the TBT Agreement.

5. At the request of either Party, the Cooperation Committee shall consider updating the list of

Annex 5-A.

6. If a Party has not used international standards as a basis for its technical regulations, it shall,

on the request of the other Party, identify any substantial deviation from the relevant international

standard and explain the reasons why such standards were considered to be inappropriate or

ineffective for the aim pursued and provide the scientific or technical evidence on which this

assessment is based.

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7. In addition to Articles 2.3 and 2.4 of the TBT Agreement, each Party shall review its technical

regulations to increase their convergence with the relevant international standards, taking into

account, inter alia, any new development in the relevant international standards or any change in the

circumstances that have given rise to divergences from those relevant international standards.

8. When developing technical regulations that may have a significant effect on trade, each Party

shall ensure, in accordance with its rules and procedures, that procedures exist that allow persons of

the Parties to provide input through a public consultation process, except where urgent problems of

safety, health, environmental protection or national security arise or threaten to arise. Each Party

shall allow persons of the other Party to participate in such consultation on terms no less favourable

than those accorded to its own persons, and make the results of that consultation process public.

ARTICLE 56

Standards

1. With a view to harmonising standards on as wide a basis as possible, each Party shall

encourage the standardising bodies within its territory, and the regional standardising bodies of

which a Party or the standardising bodies within its territory are members, to:

(a) participate, within the limits of their resources, in the preparation of international standards by

relevant international standardising bodies;

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(b) use relevant international standards as a basis for the standards they develop, except where

such international standards would be ineffective or inappropriate, for instance because of an

insufficient level of protection for human lives and health or fundamental climatic or

geographical factors or fundamental technological problems;

(c) avoid duplication of, or overlap with, the work of international standardising bodies;

(d) review, at regular intervals, national and regional standards not based on relevant international

standards, with a view to increasing their convergence with such international standards;

(e) cooperate with the relevant standardisation bodies of the other Party in international

standardisation activities. That cooperation may be undertaken in the international

standardisation bodies or at regional level; and

(f) foster bilateral cooperation between them and the standardisation bodies of the other Party.

2. The Parties should exchange information on:

(a) their use of standards in support of technical regulations;

(b) their respective standardisation processes, and the extent of use of international standards,

regional or sub-regional standards as a basis for their national standards.

3. If standards are made mandatory through incorporation or referencing in a draft technical

regulation or in a conformity assessment procedure, the transparency obligations set out in

Article 59 of this Agreement shall be fulfilled.

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ARTICLE 57

Conformity assessment

1. The provisions set out in Article 55 with respect to the preparation, adoption and application

of technical regulations shall apply to conformity assessment procedures, mutatis mutandis.

2. If a Party requires conformity assessment as a positive assurance that a product conforms with

a technical regulation, it shall:

(a) select conformity assessment procedures proportionate to the risks involved as determined on

the basis of a risk-assessment;

(b) consider the use of the supplier's declaration of conformity, i.e. a declaration of conformity

issued by the manufacturer on his sole responsibility and excluding mandatory third-party

assessment, as assurance of conformity among the options for showing compliance with

technical regulations; and

(c) if requested, provide information to the other Party on the criteria used to select the

conformity assessment procedures for specific products.

3. If a Party requires third-party conformity assessment as a positive assurance that a product

conforms with a technical regulation, and it has not reserved this task to a government authority as

specified in paragraph 5, it shall:

(a) preferentially use accreditation to qualify conformity assessment bodies;

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(b) make best use of international standards for accreditation and conformity assessment, as well

as international agreements involving the Parties' accreditation bodies, for example, through

the mechanisms of the International Laboratory Accreditation Cooperation (ILAC) and the

International Accreditation Forum (IAF);

(c) join or encourage its conformity assessment bodies to join, as applicable, any functioning

international agreements or arrangements for harmonisation or facilitation of acceptance of

conformity assessment results;

(d) ensure that economic operators have a choice amongst the conformity assessment bodies

designated by the authorities of a Party for a particular product or set of products;

(e) ensure that conformity assessment bodies are independent of manufacturers, importers and

economic operators in general and that there are no conflicts of interest between accreditation

bodies and conformity assessment bodies;

(f) allow conformity assessment bodies to use subcontractors to perform testing or inspections in

relation to the conformity assessment, including subcontractors located in the territory of the

other Party. Nothing in this point shall be construed to prohibit a Party from requiring

subcontractors to meet the same requirements that the conformity assessment body to which it

is contracted would be required to meet in order to perform the contracted tests or inspection

itself; and

(g) publish on a single website a list of the bodies that it has designated to perform such

conformity assessment and relevant information on the scope of designation of each of those

bodies.

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4. Nothing in this Article shall preclude a Party from requiring that conformity assessment, in

relation to specific products, be performed by its specified government authorities. In such cases,

the Party shall:

(a) limit the conformity assessment fees to the approximate cost of the services rendered and, on

the request of an applicant for conformity assessment, explain how any fees it imposes for

such conformity assessment are limited to the approximate cost of services rendered, and

(b) make publicly available the conformity assessment fees.

5. Notwithstanding the provisions of paragraphs 2-4, the Parties shall accept Supplier's

Declaration of Conformity as proof of compliance with existing technical regulations for the fields

and according to modalities specified in Annex 5-B.

ARTICLE 58

Cooperation in the field of technical barriers to trade

1. The Parties shall strengthen their cooperation with regard to standards, technical regulations,

metrology, market surveillance, accreditation and conformity assessment procedures with a view to

increasing the mutual understanding of their respective systems and facilitating access to their

respective markets. To that end, the Parties shall seek to identify and develop regulatory

cooperation mechanisms and initiatives appropriate for the particular issues or sectors, including:

(a) exchanging information and experiences on the preparation and application of their respective

technical regulations and conformity assessment procedures;

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(b) working towards the possibility of converging or aligning technical regulations and

conformity assessment procedures;

(c) encouraging cooperation between their respective bodies responsible for metrology,

standardisation, conformity assessment and accreditation; and

(d) exchanging information on developments in relevant regional and multilateral fora related to

standards, technical regulations, conformity assessment procedures and accreditation.

2. In order to promote trade between them, the Parties shall:

(a) seek to reduce the differences that exist between them with regard to technical regulations,

metrology, standardisation, market surveillance, accreditation and conformity assessment

procedures, including by encouraging the use of relevant internationally-agreed instruments;

(b) promote, in accordance with international rules, the use of accreditation in support of the

assessment of the technical competence of conformity assessment bodies and their activities;

and

(c) promote the participation and, where possible, the membership of the Republic of Uzbekistan

and its relevant national bodies in the European and international organisations whose activity

relates to standards, conformity assessment, accreditation, metrology and related functions.

3. The Parties shall endeavour to establish and maintain a process through which gradual

approximation of the technical regulations, standards and conformity assessment procedures of the

Republic of Uzbekistan to those of the European Union can be achieved.

4. For areas in which alignment has been achieved, the Parties may consider negotiating

agreements on conformity assessment and acceptance of industrial products.

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ARTICLE 59

Transparency

1. When developing technical regulations that may have a significant effect on trade, each Party

shall allow a period of at least 60 days following publication of proposed technical regulations and

conformity assessment procedures for the other Party to provide written comments, except where

urgent problems of safety, health, environmental protection or national security arise or threaten to

arise. A Party shall give positive consideration to a reasonable request to extend the period for

comments.

2. If a Party receives written comments on a proposed technical regulation or conformity

assessment procedure from the other Party, it shall:

(a) if requested by the other Party, discuss the written comments with the participation of its own

competent regulatory authority, at a time when they can be taken into account, and

(b) reply to comments in writing no later than the date of publication of the technical regulation

or conformity assessment procedure.

3. Each Party shall, if requested by the other Party, provide information regarding the objectives

of, and legal basis and rationale for, a technical regulation or conformity assessment procedure that

the Party has adopted or is proposing to adopt.

4. Each Party shall ensure that the technical regulations and conformity assessment procedures it

has adopted are published on a website free of charge.

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5. Each Party shall provide information on the adoption and the entry into force of the technical

regulation and conformity assessment procedure and the adopted final text.

6. Each Party shall allow a reasonable interval between the publication of technical regulations

and their entry into force in order to allow economic operators of the other Party to adapt. The

phrase “reasonable interval” shall be understood to mean a period of not less than 6 months, except

in cases where this would be an ineffective means for the fulfilment of the legitimate objectives

pursued.

ARTICLE 60

Marking and labelling

1. Each Party affirms that its technical regulations, including or dealing exclusively with

marking or labelling, will observe the principles of Article 2.2 of the TBT Agreement.

2. If a Party requires mandatory marking or labelling of products:

(a) it shall only require information that is relevant for consumers or users of the product or to

indicate the product's conformity with the mandatory technical requirements;

(b) it shall not require any prior approval, registration or certification of either the labels or the

markings of products, nor any fee disbursement, as a precondition for placing products on its

market that otherwise comply with its mandatory technical requirements, unless it is

necessary in view of the legitimate objectives referred to in Article 2.2 of the TBT

Agreement;

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(c) if it requires the use of a unique identification number by economic operators, it shall issue

such a number to the economic operators of the other Party without undue delay and on a non-

discriminatory basis;

(d) provided that the elements listed below are not misleading, contradictory or confusing in

relation to the information required in the importing Party of the goods, that Party shall

permit:

(i) information in other languages in addition to the language required by the importing

Party of the goods;

(ii) internationally-accepted nomenclatures, pictograms, symbols or graphics; and

(iii) additional information to that required by the importing Party of the goods;

(e) it shall accept that additional labelling or corrections to labelling take place in customs

warehouses or other designated areas in the country of import, unless for reasons of public

health and safety such labelling is required by the legislation of the Parties; and

(f) it endeavours to accept labels that can be affixed to existing labels or marking or labelling

information that is in the accompanying documentation rather than being physically attached

to the product.

3. Paragraph 2(e) shall apply until the date of accession of the Republic of Uzbekistan to the

WTO.

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ARTICLE 61

Cooperation on market surveillance, safety and compliance of non-food products

1. The Parties recognise the importance of cooperation on market surveillance, safety and

compliance of non-food products, for the facilitation of trade and for the protection of consumers

and other users, and of building mutual trust based on shared information.

2. To guarantee independent and impartial functioning of market surveillance, the Parties shall

ensure:

(a) the separation of market surveillance functions from conformity assessment functions; and

(b) the absence of any interest that would affect the impartiality of market surveillance authorities

in the performance of control or supervision of economic operators.

3. The Parties may cooperate and exchange information in the area of market surveillance,

safety and compliance of non-food product, in particular with respect to the following:

(a) market surveillance and enforcement activities and measures;

(b) risk assessment methods and product testing;

(c) coordinated product recalls or other similar actions;

(d) scientific, technical and regulatory matters, aiming to improve non-food product safety and

compliance;

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(e) emerging issues of significant health and safety relevance;

(f) standardisation-related activities; and

(g) exchange of officials.

4. The European Union may provide the Republic of Uzbekistan with selected information from

its rapid alert system with respect to consumer products as referred to in Directive 2001/95/EC of

the European Parliament and of the Council1 or its successor, and the Republic of Uzbekistan may

provide the European Union with relevant information on the safety of non-food consumer products

and on preventive, restrictive and corrective measures taken, with respect to consumer products as

referred to in the relevant legislation of the Republic of Uzbekistan. The information exchange may

take the form of:

(a) ad-hoc exchange, in duly justified cases, excluding personal data; or

(b) systematic exchange, based on an arrangement that may be established by the Cooperation

Committee in Annex 5-C.

5. The Cooperation Committee may establish, in Annex 5-D, an arrangement on the regular

exchange of information, including by electronic means, on measures taken on non-compliant non-

food products, other than those covered by paragraph 4.

6. The Parties shall use the information obtained pursuant to paragraphs 3, 4 and 5 for the sole

purpose of protection of consumers, health, safety or the environment.

1 Directive 2001/95/EC of the European Parliament and of the Council of 3 December 2001 on

general product safety (OJ EU L 11, 15.1.2002, p. 4).

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7. Each Party shall treat the information obtained pursuant to paragraphs 3, 4 and 5 as

confidential.

8. The arrangements referred to in paragraphs 4 and 5 shall specify the type of information to be

exchanged, the modalities for the exchange and the application of confidentiality and personal data

protection rules. The Cooperation Committee shall have the power to adopt decisions in order to

determine or amend arrangements set out in Annexes 5-C and 5-D.

9. For the purposes of this Chapter, “market surveillance” means activities conducted and

measures taken by public authorities including those taken in cooperation with economic operators,

on the basis of procedures of a Party to enable that Party to monitor or address compliance or safety

of products with the requirements set out in its laws and regulations. For Uzbekistan, economic

operator means manufacturer, authorised representative, importer or seller.

ARTICLE 62

Technical discussions and consultations

1. Each Party may request a discussion of any draft or proposed technical regulation or

conformity assessment procedure of the other Party that the Party considers might significantly

adversely affect trade between the Parties. The request shall be made in writing and identify:

(a) the measure in question;

(b) the provisions of this Chapter to which the concerns relate; and

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(c) the reasons for the request, including a description of the requesting Party's concerns

regarding the measure.

2. A Party shall deliver its request to the TBT Chapter coordinator of the other Party designated

pursuant to Article 63.

3. At the request of either Party, the Parties shall meet to discuss the concerns raised in the

request, in person or via video or teleconference, within 60 days of the date of the request and shall

endeavour to resolve the matter as expeditiously as possible. If the requesting Party believes that the

matter is urgent, it may request that any meeting take place within a shorter time frame. In such

cases, the responding Party shall give positive consideration to such a request.

4. A Party may request consultations with the other Party regarding any matter arising under this

Chapter by delivering a written request to the Chapter coordinator of the other Party. The Parties

shall make every attempt to resolve the matter in a mutually satisfactory manner.

5. This Article is without prejudice to the rights and obligations of the Parties under Chapter 14.

ARTICLE 63

TBT Chapter coordinator

1. Each Party shall nominate a TBT Chapter coordinator and notify the other Party of the contact

details of that coordinator and of any changes thereto. The TBT Chapter coordinators shall work

jointly to facilitate the implementation of this Chapter and the cooperation between the Parties in all

matters related to the TBT Agreement.

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2. The functions of each TBT Chapter coordinators shall include:

(a) following the implementation and administration of this Chapter, including any issue related

to the development, adoption, application or enforcement of technical regulations, standards

and conformity assessment procedures;

(b) communicating with the other Party's TBT Chapter coordinator on initiatives taken by the

Parties for enhancing cooperation in the development and improvement of standards,

technical regulations and conformity assessment procedures;

(c) arranging the establishment of technical discussions, as appropriate, in accordance with

Article 62; and

(d) exchanging information on developments in non-governmental, regional and multilateral fora

related to standards, technical regulations and conformity assessment procedures.

3. The TBT Chapter coordinators shall communicate with one another by any agreed method

that is appropriate to carry out their functions.

ARTICLE 64

Transition period

With respect to the Republic of Uzbekistan, Articles55(3), Article 55(6), Article 55(7),

Article 56(1)(b), Article 56(1)(c), Article 57(3)(b), Article 57(3)(d), Article 57(5) and Annex 5-B

shall apply five years after the date of entry into force of this Agreement.

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CHAPTER 6

SANITARY AND PHYTOSANITARY MATTERS

ARTICLE 65

Objectives

The objective of this Chapter is to set out the principles applicable to sanitary and phytosanitary

(hereinafter referred to as "SPS") measures, as defined in the WTO SPS Agreement, including

animal and plant health and food safety, in trade between the Parties, as well as to cooperation on

animal welfare, antimicrobial resistance and sustainable food systems. The principles set out in this

Chapter shall be applied by the Parties in a manner that facilitates trade and avoid the creation of

unjustified barriers to trade between them, while preserving each Party's level of protection of

human, animal or plant life or health.

ARTICLE 66

Principles

1. The Parties shall ensure that SPS measures are developed and applied on the basis of the

principles of proportionality, transparency, non-discrimination and scientific justification and taking

into account the international standards (the International Plant Protection Convention, signed in

Rome on 6 December 1951 (hereinafter referred to as the "IPPC"), the World Organisation for

Animal Health (hereinafter referred to as the "OIE"), and the Codex Alimentarius Commission

(hereinafter referred to as the "Codex Alimentarius").

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2. Each Party shall ensure that its SPS measures do not arbitrarily or unjustifiably discriminate

between its own territory and the territory of the other Party to the extent that identical or similar

conditions prevail. SPS measures shall not be applied in a manner which would constitute a

disguised restriction on trade between the Parties.

3. Each Party shall ensure that SPS measures, procedures or controls are implemented properly

and that requests for information received from a competent authority of the other Party are

addressed without undue delay and in a manner no less favourable to imported products than to like

domestic products.

ARTICLE 67

Import requirements and official SPS certificates

1. Each Party's import requirements shall be based on Codex Alimentarius, OIE and IPPC

principles and their relevant standards, unless the import requirements are supported by a science-

based risk assessment conducted in accordance with the applicable international rules provided for

in the SPS Agreement.

2. The import requirements of the importing Party shall be applicable to the entire territory of

the exporting Party, as shall the official SPS certificates that may be required for trading between

the Parties agricultural products, including plants and plant products, subject to Article 69.

3. For the purposes of this Chapter, official SPS certificates are defined as documents issued by

the exporting party that guarantee that the listed import requirements defined by the law of the

importing party regarding the products to which they relate have been met.

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ARTICLE 68

Equivalence

1. Upon request of the exporting Party and subject to satisfactory evaluation by the importing

Party, the Parties shall recognise equivalence, in accordance with relevant international procedures,

with respect to a particular measure or group of measures or systems applied in general or to a

sector or a part of the sector.

2. Recognition of equivalence shall be established by the Cooperation Committee and listed in

Annex 6.

ARTICLE 69

Measures linked to animal and plant health

1. The Parties shall recognise the concept of pest- or disease-free areas and areas of low pest or

disease prevalence in accordance with the SPS Agreement and the relevant Codex, OIE and IPPC

standards, guidelines or recommendations.

2. When determining pest- or disease-free areas and areas of low pest or disease prevalence, the

Parties shall consider factors such as geographical location, ecosystems, epidemiological

surveillance and the effectiveness of sanitary or phytosanitary controls in such areas.

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3. The importing Party shall base its sanitary and phytosanitary measures, which are applied to

the exporting Party whose territory is affected by a pest or a disease on the zoning decision taken by

the exporting Party provided that the importing Party is assured that an appropriate level of

protection will be achieved.

ARTICLE 70

Inspections and audits

1. Inspections and audits carried out by the importing Party in the territory of the exporting Party

to evaluate the latter's inspection and certification systems shall be performed in accordance with

the relevant IPPC, OIE and Codex Alimentarius standards, guidelines and recommendations.

Additional inspections which are part of inspection and certification systems audit may be directed

to specific exporting facilities and manufacturers at any time.

2. If the importing Party is satisfied with the results of aforementioned inspections and audits

and maintains a list of authorised establishments or facilities for the import of animals or animal

products it shall approve establishments situated in the territory of the exporting party without prior

inspection, if the exporting Party has requested so, accompanied by the appropriate guarantees

defined by the importing Party.

3. Each Party shall base its acceptance of guarantees on:

(a) the evaluation of the official competent authority as well as its capacity to control the

exporting establishments;

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(b) the written guarantee of the competent authority on the compliance with the minimum

requirements of the importing Party.

4. Whenever possible, the importing Party shall notify the other Party of a non-compliant

commodity, of the reason for non-compliance, and provide them with all relevant information on

the reasons of non-compliance.

5. The costs of inspections and audits shall be borne by the Party carrying out the audits and the

inspections in accordance with its internal procedures.

ARTICLE 71

Import checks and fees

1. If import checks reveal non-compliance with the relevant import requirements, the action

taken by the importing Party must be based on an assessment of the risk involved and not be more

trade-restrictive than required to achieve the importing Party's appropriate level of sanitary or

phytosanitary protection.

2. Whenever possible, the importing Party shall notify the importer or its representative of a

non-compliant consignment, of the reason for non-compliance and provide them with an

opportunity for a review of the decision. The importing Party shall consider any relevant

information submitted to assist in the review.

3. A Party may collect fees for the costs incurred to conduct frontier checks, which should not

exceed the recovery of the costs.

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ARTICLE 72

Exchange of information and cooperation

1. The Parties shall discuss and exchange information on existing SPS and animal welfare

measures and on their development and implementation. Such discussions and exchanges of

information shall, as appropriate, take into account the SPS Agreement and the standards,

guidelines or recommendations of the IPPC, the OIE and the Codex Alimentarius.

2. The Parties shall cooperate on matters relating to food safety, animal health, animal welfare,

plant health and antimicrobial resistance through the exchange of information, expertise and

experience with the objective to build up capacity in those fields. Such cooperation may include

technical assistance. Particular attention will be given to the detection and control of animal and

plant diseases and improvement of risk analysis systems. The Cooperation Committee may adopt a

technical assistance program for this purpose.

3. The Parties shall establish a timely dialogue on SPS issues upon request by either Party to

consider matters relating to SPS and other urgent issues covered by this Chapter. The Cooperation

Committee may adopt rules for the conduct of such dialogues.

4. The Parties shall designate and update regularly contact points for communication on matters

covered by this Chapter.

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ARTICLE 73

Transparency

Each Party shall:

(a) pursue transparency as regards SPS measures applicable to trade and, in particular, to the SPS

requirements applied to imports of the other Party;

(b) communicate, upon the request of the other Party and without undue delay, the requirements

that apply for the importation of specific products, and indicate whether a risk assessment is

needed;

(c) notify the contact point of the other Party, by mail, fax or e-mail, without undue delay, of any

serious or significant human, animal or plant health risk, including any food emergencies,

related to goods traded between the Parties.

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CHAPTER 7

INTELLECTUAL PROPERTY

SECTION 1

GENERAL PROVISIONS

ARTICLE 74

Objectives

The objectives of this Chapter are to:

(a) facilitate the production and commercialisation of innovative and creative products and

services between the Parties contributing to a more sustainable and inclusive economy for the

Parties;

(b) facilitate and govern trade between the Parties as well as reduce distortions and impediments

to such trade; and

(c) achieve an adequate and effective level of protection and enforcement of intellectual property

rights.

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ARTICLE 75

Nature and Scope of Obligations

1. The Parties shall implement the international treaties dealing with intellectual property rights

to which they are parties. The TRIPS Agreement contained in Annex 1C to the WTO Agreement is

hereby incorporated into and made part of this Agreement, mutatis mutandis. This Chapter shall

complement and further specify the rights and obligations of each Party under international treaties

in the field of intellectual property to which they are party.

2. For the purposes of this Chapter, the term "intellectual property rights" means all categories of

intellectual property that are referred to in of Articles 78 to 120 of this Chapter and Sections 1 to 7

of Part II of the TRIPS Agreement.

3. The protection of intellectual property rights includes protection against unfair competition as

referred to in Article 10bis of the Paris Convention for the Protection of Industrial Property of 20

March 1883, as revised at Stockholm on 14 July 1967 (the "Paris Convention").

4. This Chapter does not preclude a Party from applying provisions of its law introducing higher

standards for the protection and enforcement of intellectual property rights, provided that they are

compatible with this Chapter.

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ARTICLE 76

Exhaustion

1. Each Party shall provide for a regime of national or regional exhaustion of intellectual

property rights.

2. In the area of copyright and related rights, exhaustion of rights applies only to the distribution

to the public by sale or otherwise of the original of works or of other protected subject matter or

copies thereof.

ARTICLE 77

National treatment

1. In respect of intellectual property rights covered by this Chapter, each Party shall accord to

the nationals of the other Party treatment no less favourable than that it accords to its own nationals

with regard to the protection1 of intellectual property rights, subject to the exceptions already

provided for, respectively, in:

(a) the Paris Convention;

1 For the purposes of this paragraph, "protection" shall include matters affecting the

availability, acquisition, scope, maintenance, and enforcement of intellectual property rights

as well as matters affecting the use of intellectual property rights specifically addressed in this

Chapter. Further, for the purposes of this paragraph, "protection" also includes measures to

prevent the circumvention of effective technological measures and measures concerning

rights management information.

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(b) the Berne Convention for the Protection of Literary and Artistic Works (hereinafter referred to

as the 'Berne Convention') revised at Paris on 24 July 1971 and amended on 28 September

1979;

(c) the International Convention for the Protection of Performers, Producers of Phonograms and

Broadcasting Organisations done at Rome on 26 October 1961 (hereinafter referred to as the

"Rome Convention"); or

(d) the Treaty on Intellectual Property in Respect of Integrated Circuits adopted at Washington,

on 26 May 1989.

In respect of performers, producers of phonograms and broadcasting organisations, the obligation

referred to in the first subparagraph only applies in respect of the rights provided for in this

Agreement.

2. A Party may avail itself of the exceptions permitted pursuant to paragraph 1 in relation to its

judicial and administrative procedures, including requiring a national of the other Party to designate

an address for service of process in its territory, or to appoint an agent in its territory, provided that

such exceptions are:

(a) necessary to secure compliance with the Party's laws or regulations that are not inconsistent

with this Chapter; and

(b) not applied in a manner that would constitute a disguised restriction on trade.

& /en 83

3. Paragraph 1 does not apply to procedures provided for in multilateral agreements concluded

under the auspices of the World Intellectual Property Organisation hereinafter referred to as the

"WIPO") relating to the acquisition or maintenance of intellectual property rights.

SECTION 2

STANDARDS CONCERNING INTELLECTUAL PROPERTY RIGHTS

SUB-SECTION 1

COPYRIGHT AND RELATED RIGHTS

ARTICLE 78

International agreements

1. Each Party shall comply with:

(a) the WIPO Copyright Treaty (WCT) adopted in Geneva on 20 December 1996;

(b) the WIPO Performances and Phonograms Treaty (WPPT) adopted in Geneva on

20 December 1996; and

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(c) the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind,

Visually Impaired or Otherwise Print Disabled adopted in Marrakesh on 28 June 2013.

2. Each Party shall make all reasonable efforts to ratify or accede to the Beijing Treaty on

Audiovisual Performances adopted in Beijing on June 24, 2012.

ARTICLE 79

Authors

Each Party shall provide for authors the exclusive right to authorise or prohibit:

(a) direct or indirect, temporary or permanent reproduction by any means and in any form, in

whole or in part of their works;

(b) any form of distribution to the public by sale or otherwise of the original of their works or of

copies thereof;

(c) any communication to the public of their works, by wire or wireless means, including the

making available to the public of their works in such a way that members of the public may

access them from a place and at a time individually chosen by them; and

(d) the commercial rental to the public of originals or copies of their works.

& /en 85

ARTICLE 80

Performers

Each Party shall provide for performers the exclusive right to authorise or prohibit:

(a) the fixation1 of their performances;

(b) the direct or indirect, temporary or permanent reproduction by any means and in any form, in

whole or in part of fixations of their performances;

(c) the distribution to the public, by sale or otherwise, of the fixations of their performances;

(d) the making available to the public of fixations of their performances, by wire or wireless

means, in such a way that members of the public may access them from a place and at a time

individually chosen by them;

(e) the broadcasting by wireless means and the communication to the public of their

performances, except where the performance is itself already a broadcast performance or is

made from a fixation; and

(f) the commercial rental to the public of the fixation of their performances.

1 "Fixation" means the embodiment of sounds, or of the representations thereof, or the

embodiment of moving images, whether or not accompanied by sounds or by the

representations thereof, from which they can be perceived, reproduced or communicated

through a device.

& /en 86

ARTICLE 81

Producers of phonograms

Each Party shall provide for phonogram producers the exclusive right to authorise or prohibit:

(a) the direct or indirect, temporary or permanent, reproduction by any means and in any form, in

whole or in part of their phonograms;

(b) the distribution to the public, by sale or otherwise, of their phonograms, including copies

thereof;

(c) the making available to the public of their phonograms, by wire or wireless means, in such a

way that members of the public may access them from a place and at a time individually

chosen by them; and

(d) the commercial rental of their phonograms to the public.

ARTICLE 82

Broadcasting organisations

Each Party shall provide broadcasting organisations with the exclusive right to authorise or prohibit:

(a) the fixation of their broadcasts, whether those broadcasts are transmitted by wire or over the

air, including by cable or satellite;

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(b) the direct or indirect, temporary or permanent reproduction by any means and in any form, in

whole or in part, of fixations of their broadcasts, whether those broadcasts are transmitted by

wire or over the air, including by cable or satellite;

(c) the making available to the public, by wire or wireless means, of fixations of their broadcasts,

whether those broadcasts are transmitted by wire or over the air, including by cable or

satellite, in such a way that members of the public may access them from a place and at a time

individually chosen by them;

(d) he distribution to the public, by sale or otherwise, of fixations, including copies thereof, of

their broadcasts, whether those broadcasts are transmitted by wire or over the air, including by

cable or satellite; and

(e) the rebroadcasting of their broadcasts by wireless means, as well as the communication to the

public of their broadcasts if such communication is made in places accessible to the public

against payment of an entrance fee.

ARTICLE 83

Broadcasting and communication to the public of phonograms published for commercial purposes

1. Each Party shall provide a right in order to ensure that a single equitable remuneration is paid

by the user to the performers and producers of phonograms, if a phonogram published for

commercial purposes, or a reproduction of such phonogram, is used for broadcasting or

communication to the public.

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2. Each Party shall ensure that the single equitable remuneration referred to in paragraph 1 is

shared between the relevant performers and phonogram producers. Each Party may, in the absence

of an agreement between performers and producers of phonograms, set the terms according to

which performers and producers of phonograms shall share the single equitable remuneration.

ARTICLE 84

Term of protection

1. With respect to the Republic of Uzbekistan, this Article shall apply three years after the date

of entry into force of this Agreement.

2. The rights of an author of a work shall run for the life of the author and for 70 years after his

or her death, irrespective of the date when the work is lawfully made available to the public.

3. The term of protection of a musical composition with words shall expire 70 years after the

death of the last of the following persons to survive, whether or not those persons are designated as

co-authors: the author of the lyrics and the composer of the musical composition, provided that both

contributions were specifically created for the respective musical composition with words.

4. In the case of a work of joint authorship, the term referred to in paragraph 1 shall be

calculated from the death of the last surviving author.

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5. In the case of anonymous or pseudonymous works, the term of protection shall run for 70

years after the work is lawfully made available to the public. However, when the pseudonym

adopted by the author leaves no doubt as to his or her identity, or if the author discloses his or her

identity during the period referred to in the first sentence, the term of protection applicable shall be

that laid down in paragraph 1.

6. The term of protection of cinematographic or audiovisual works shall expire 70 years after the

death of the last of the following persons to survive, whether or not these persons are designated as

co-authors:

(a) the principal director;

(b) the author of the screenplay;

(c) the author of the dialogue; and

(d) the composer of music specifically created for use in the cinematographic or audiovisual

work.

7. The rights of broadcasting organisations shall expire 50 years after the first transmission of a

broadcast, whether this broadcast is transmitted by wire or over the air, including by cable or

satellite.

8. The rights of performers shall expire not less than 50 years after the date of the fixation of the

performance.

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9. The rights of producers of phonograms shall expire not less than 50 years after the fixation is

made, or if the phonogram has been lawfully published during this time, 70 years from such

publication. In the absence of a lawful publication, if the phonogram has been lawfully

communicated to the public during this time, the term of protection shall be 70 years from such act

of communication. Each Party may provide for effective measures in order to ensure that the profit

generated during the 20 years of protection beyond 50 years is shared fairly between the performers

and the producers of phonograms.

10. The terms laid down in this Article shall be calculated from 1 January of the year following

the event.

11. Each Party may provide for longer terms of protection than those provided for in this Article.

ARTICLE 85

Resale right

1. Each Party shall provide, for the benefit of the author of an original work of graphic or plastic

art, a resale right, to be defined as an inalienable right, which cannot be waived, even in advance, to

receive a royalty based on the sale price obtained for any resale of the work, subsequent to the first

transfer of the work by the author.

2. The right referred to in paragraph 1 shall apply to all acts of resale involving as sellers, buyers

or intermediaries art market professionals, such as salesrooms, art galleries and, in general, any

dealers in works of art.

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3. Each Party may provide that the right referred to in paragraph 1 shall not apply to acts of

resale where the seller has acquired the work directly from the author less than three years before

that resale and where the resale price does not exceed a certain minimum amount.

4. The procedure for collection of the remuneration and their amounts shall be determined by the

law of each Party.

ARTICLE 86

Collective management of rights

1. The Parties shall promote cooperation between their respective collective management

organisations for the purpose of fostering the availability of works and other protected subject

matter in the territories of the Parties and the transfer of rights revenue between the respective

collective management organisations for the use of such works or other protected subject matter.

2. The Parties shall promote transparency of collective management organisations, in particular

regarding rights revenue they collect, deductions they apply to rights revenue they collect, the use

of the rights revenue collected, the distribution policy and their repertoire.

3. Each Party shall encourage collective management organisations established in its territory

and representing another collective management organisation established in the territory of the other

Party by way of a representation agreement, to accurately, regularly and diligently pay amounts

owed to the represented collective management organisations as well as provide the represented

collective management organisation with the information on the amount of rights revenue collected

on its behalf and any deductions made to this rights revenue.

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ARTICLE 87

Exceptions and limitations

Each Party shall confine limitations or exceptions to the rights set out in Articles 79 to 82 to certain

special cases which do not conflict with a normal exploitation of the work or other subject-matter

and do not unreasonably prejudice the legitimate interests of the right holders.

ARTICLE 88

Protection of technological measures

1. With respect to the Republic of Uzbekistan, this Article shall apply three years after the date

of entry into force of this Agreement.

2. Each Party shall provide adequate legal protection against the circumvention of any effective

technological measures, which the person concerned carries out in the knowledge, or with

reasonable grounds to know, that he or she is pursuing that objective.

3. Each Party shall provide adequate legal protection against the manufacture, import,

distribution, sale, rental, advertisement for sale or rental, or possession for commercial purposes of

devices, products or components or the provision of services which:

(a) are promoted, advertised or marketed for the purpose of circumventing any effective

technological measure;

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(b) have only a limited commercially significant purpose or use other than to circumvent any

effective technological measure; or

(c) are primarily designed, produced, adapted or performed for the purpose of enabling or

facilitating the circumvention of any effective technological measure.

4. For the purposes of this Sub-Section, 'technological measures' means any technology, device

or component that, in the normal course of its operation, is designed to prevent or restrict acts, in

respect of works or other subject-matter, which are not authorised by the right-holder of any

copyright or related right as provided for by national legislation. Technological measures shall be

deemed 'effective' where the use of a protected work or other subject matter is controlled by the

right-holders through application of an access control or protection process, such as encryption,

scrambling or other transformation of the work or other subject-matter or a copy control

mechanism, which achieves the protection objective.

5. Notwithstanding the legal protection provided for in paragraph 1, in the absence of voluntary

measures taken by the right-holders, each Party may take appropriate measures to ensure that the

adequate legal protection against the circumvention of effective technological measures provided

for in accordance with this Article does not prevent beneficiaries of exceptions or limitations

provided for in accordance with Article 87 from enjoying such exceptions or limitations.

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ARTICLE 89

Obligations concerning rights management information

1. With respect to the Republic of Uzbekistan, this Article shall apply three years after the date

of entry into force of this Agreement.

2. Each Party shall provide adequate legal protection against any person knowingly performing

without authority any of the following acts if such person knows, or has reasonable grounds to

know, that by so doing he or she is inducing, enabling, facilitating or concealing an infringement of

a copyright or any related rights provided for in national legislation:

(a) the removal or alteration of any electronic rights-management information and

(b) the distribution, importation for distribution, broadcasting, communication or making

available to the public of works or other subject-matter protected under this Sub-Section from

which electronic rights-management information has been removed or altered without

authority,

3. For the purposes of this Article, "rights-management information" means any information

provided by right holders which identifies the work or other subject-matter referred to in this

Article, the author or any other right holder, or information about the terms and conditions of use of

the work or other subject-matter, and any numbers or codes that represent such information.

4. Paragraph 2 shall apply when any of these items of information is associated with a copy of,

or appears in connection with the communication to the public of, a work or other subject-matter

referred to in this Article.

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SUB-SECTION 2

TRADEMARKS

ARTICLE 90

International agreements

1. Each Party shall:

(a) comply with the Protocol relating to the Madrid Agreement concerning the International

Registration of Marks adopted at Madrid on 27 June 1889 as amended on 3 October 2006 and

on 12 November 2007;

(b) maintain a trade mark classification system that is consistent with the Nice Agreement

Concerning the International Classification of Goods and Services for the Purposes of the

Registration of Marks of 15 June 1957 as amended on 28 September 1979; and

(c) make all reasonable efforts to accede to the Singapore Treaty on the Law of Trademarks done

at Singapore on 27 March 2006.

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ARTICLE 91

Signs of which a trademark may consist

A trademark may consist of any signs, in particular words, including personal names, or designs,

letters, numerals, colours, the shape of goods or of the packaging of goods, or sounds, provided that

such signs are capable of:

(a) distinguishing the goods or services of one undertaking from those of other undertakings; and

(b) being represented on the respective trademark register of each Party, in a manner which

enables the competent authorities and the public to determine the clear and precise subject

matter of the protection afforded to its proprietor.

ARTICLE 92

Rights conferred by a trademark

1. The registered trademark shall confer on the owner exclusive rights therein. The owner shall

be entitled to prevent all third parties, not having the consent of the proprietor, from using in the

course of trade any sign:

(a) which is identical with the registered trademark in relation to goods or services which are

identical with those for which the trademark is registered;

& /en 97

(b) where, because of its identity with, or similarity to, the registered trademark and the identity

or similarity of the goods or services covered by this trademark and the sign, there exists a

likelihood of confusion on the part of the public, which includes the likelihood of association

between the sign and the registered trademark.

2. The Parties shall initiate a dialogue with a view for the Republic of Uzbekistan to establish

the legal measures, in line with Union legislation, ensuring that the owner of a registered trademark

is entitled to prevent all third parties from bringing goods, in the course of trade, into the Party

where the trademark is registered without being released for free circulation there.

ARTICLE 93

Registration procedure

1. Each Party shall provide for a system for the registration of trademarks in which each final

negative decision, including partial refusal, taken by the relevant trademark administration, shall be

communicated in writing to the relevant party, duly reasoned and subject to appeal.

2. Each Party shall provide for the possibility for third parties to oppose trademark applications

or, where appropriate, trademark registrations. Such opposition proceedings shall be adversarial.

3. Each Party shall provide a publicly available electronic database of trademark applications

and trademark registrations.

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ARTICLE 94

Well-known trademarks

For the purpose of giving effect to protection of well-known trademarks, as referred to in

Article 6bis of the Paris Convention and Article 16(2) and (3) of the TRIPS Agreement, each Party

shall apply the Joint Recommendation Concerning Provisions on the Protection of Well-Known

Marks adopted by the assembly of the Paris Union for the Protection of Industrial Property and the

General Assembly of the WIPO at the Thirty-Fourth Series of Meetings of the Assemblies of the

Member States of WIPO from 20 to 29 September 1999.

ARTICLE 95

Exceptions to the rights conferred by a trademark

1. Each Party shall provide for limited exceptions to the rights conferred by a trademark such as

the fair use of descriptive terms including geographical indications, and may provide other limited

exceptions, provided such exceptions take account of the legitimate interests of the proprietor of the

trademark and of third parties.

2. A trademark shall not entitle the owner to prohibit a third party from using, in the course of

trade, the following, provided that he or she uses them in accordance with honest practices in

industrial or commercial matters:

(a) the name or address of the third party, where that third party is a natural person;

& /en 99

(b) signs or indications concerning the kind, quality, quantity, intended purpose, value,

geographical origin, the time of production of goods or of rendering of the service, or other

characteristics of goods or services; and

(c) the trademark where it is necessary to indicate the intended purpose of a good or service, in

particular as accessories or spare parts.

3. The trademark shall not entitle the owner to prohibit a third party from using, in the course of

trade, an earlier right which only applies in a particular locality if that right is recognised by the

laws of the Party in question and within the limits of the territory in which it is recognised.

ARTICLE 96

Grounds for revocation

1. Each Party shall provide that a trademark shall be liable to revocation if, within a continuous

period of at least three years, it has not been put to genuine use in the relevant territory in

connection with the goods or services in respect of which it is registered, and there are no proper

reasons for non-use. However, no person may claim that the proprietor's rights in a trademark

should be revoked where, during the interval between the expiry of a period of at least three-year

and filing of the application for revocation, genuine use of the trademark has been started or

resumed. The commencement or resumption of use within a period of three months preceding the

filing of the application for revocation which began at the earliest on expiry of the continuous

period of minimum three years of non-use, shall, however, be disregarded where preparations for

the commencement or resumption occur only after the proprietor becomes aware that the

application for revocation may be filed.

& /en 100

2. A trademark shall also be liable to revocation if, after the date on which it was registered:

(a) as a consequence of acts or inactivity of the proprietor, it has become the common name in

the trade for a good or service in respect of which it is registered;

(b) as a consequence of the use made of it by the proprietor of the trademark or with the consent

of the proprietor in respect of the goods or services for which it is registered, it is liable to

mislead the public, particularly as to the nature, quality or geographical origin of those goods

or services.

ARTICLE 97

Bad-faith applications

A trademark shall be liable to be declared invalid where the application for registration of the

trademark was made in bad faith by the applicant. Each Party may also provide that such a

trademark shall not be registered.

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SUB-SECTION 3

DESIGNS

ARTICLE 98

International agreements

The European Union shall comply with its commitments under the Geneva Act of the Hague

Agreement Concerning the International Registration of Industrial Designs of 2 July 1999 and the

Republic of Uzbekistan shall make all reasonable efforts to ratify or accede to the Geneva Act.

ARTICLE 99

Protection of registered designs

1. Each Party shall provide for the protection of independently created designs that are new and

original. This protection shall be provided by registration and shall confer exclusive rights upon

their holders in accordance with this Sub-section. For the purpose of this Article, a Party may

consider that a design having individual character is original.

& /en 102

2. The holder of a registered design shall have the right to prevent third parties not having the

consent of the holder of a registered design at least from making, offering for sale, selling,

importing, stocking the product bearing and embodying the protected design or using articles

bearing or embodying the protected design when such acts are undertaken for commercial purposes.

3. A design applied to or incorporated in a product which constitutes a component part of a

complex product shall only be considered to be new and original:

(a) if the component part, once it has been incorporated into the complex product, remains visible

during normal use of the latter; and

(b) to the extent that those visible features of the component part fulfil in themselves the

requirements as to novelty and originality.

4. For the purposes of point (a) of paragraph 3, "normal use" means use by the end user,

excluding maintenance, servicing or repair work.

ARTICLE 100

Duration of Protection

Each Party shall ensure that a design shall be protected for a period of at least five years as from the

date of the filing of the application and that the right-holder has the right to renew the term of

protection for one or more five-year periods, up to a total term of at least 15 years from the date of

filing.

& /en 103

ARTICLE 101

Exceptions and exclusions

1. Each Party may provide limited exceptions to the protection of designs provided that such

exceptions do not unreasonably conflict with the normal exploitation of protected designs and do

not unreasonably prejudice the legitimate interests of the holder of the protected design, taking

account of the legitimate interests of third parties.

2. Design protection shall not extend to designs solely dictated by its technical or functional

considerations. A design shall not subsist in features of appearance of a product which must

necessarily be reproduced in their exact form and dimensions in order to permit the product in

which the design is incorporated or to which it is applied to be mechanically connected to or placed

in, around or against another product so that either product may perform its function.

3. A design right shall not subsist in a design which is contrary to public policy or to accepted

principles of morality.

4. By way of derogation from paragraph 2 of this Article, a design shall under the conditions set

out in Article 99 (1) subsist in a design, which has the purpose of allowing the multiple assembly or

connection of mutually interchangeable products within a modular system.

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ARTICLE 102

Relationship to Copyright

Each Party shall ensure that a design shall also be eligible for protection under its copyright law as

from the date on which the design was created or fixed in any form. The extent to which, and the

conditions under which, such a protection is conferred, including the level of originality required,

shall be determined by each Party.

SUB-SECTION 4

GEOGRAPHICAL INDICATIONS

ARTICLE 103

Scope

1. For the purposes of this Sub-Section, "Geographical indication" means indication as in

Article 22(1) of the TRIPS Agreement, which shall be understood as also including "appellations of

origin".

2. This Sub-Section applies to the recognition and protection of geographical indications

originating in the territories of the Parties.

& /en 105

3. Geographical indications of a Party which are to be protected by the other Party shall only be

subject to this Sub-Section if they are covered by the scope of the legislation referred to in

Article 104.

ARTICLE 104

Established Geographical Indications

1. The legislation of the Republic of Uzbekistan listed in Section A of Annex 7-A shall contain

the elements for the registration and control of geographical indications set out in Section B of

Annex 7-A at the latest five years after the date of entry into force of this Agreement.

2. Having examined the legislation of the European Union listed in Section A of Annex 7-A, the

Republic of Uzbekistan concludes that that legislation contains the elements for the registration and

control of geographical indications set out in Section B of Annex 7-A.

3. Following the completion of an opposition procedure in accordance with the criteria set out in

Annex 7-B and an examination of the geographical indications for products of the European Union

to be protected in the Republic of Uzbekistan listed in Section A of the Annex 7-C, which have

been registered by the European Union under the legislation referred to in paragraph 2, the Republic

of Uzbekistan shall protect those geographical indications according to the level of protection laid

down in this Sub-Section.

& /en 106

4. Paragraph 3 shall apply five years after the date of entry into force of this Agreement. During

this transitional period of five years, the Republic of Uzbekistan shall put in place all

complementary actions and shall protect the geographical indications for products of the European

Union listed in Section A of the Annex 7-C at the level provided by its national legislation. During

the transition period the level of protection provided shall not be decreased.

5. Following the completion of an opposition procedure in accordance with the criteria set out in

Annex 7-B and an examination of the geographical indications for products of the Republic of

Uzbekistan listed in Section B of the Annex 7-C, which have been registered by the Republic of

Uzbekistan under the legislation referred to in paragraph 1, the European Union shall protect those

geographical indications according to the level of protection laid down in this Sub-Section.

ARTICLE 105

Addition of new geographical indications

The Parties may amend the list of geographical indications to be protected in Annex 7-C in

accordance with Article 136. New geographical indications shall be added following the completion

of the opposition procedure and their examination as referred to in paragraphs 3 or 4 of Article 104.

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ARTICLE 106

Scope of protection of geographical indications

1. The geographical indications listed in Annex 7-C as well as the geographical indications

added in accordance with Article 105 shall be protected against:

(a) any direct or indirect commercial use of a protected name:

(i) for comparable products not compliant with the product specification of the protected

name, or

(ii) in so far as such use exploits the reputation of a geographical indication;

including when those products are used as an ingredient.

(b) any misuse, imitation or evocation, even if the true origin of the product is indicated or if the

protected name is translated, transcribed, transliterated or accompanied by an expression such

as "style", "type", "method", "as produced in", "imitation", "flavour", "like" or similar,

including when those products are used as an ingredient;

(c) any other false or misleading indication as to the origin, nature or essential qualities of the

product, on the inner or outer packaging, advertising material or documents relating to the

product concerned, and the packing of the product in a container liable to convey a false

impression as to its origin, including when those products are used as an ingredient; and

(d) any other practice liable to mislead the consumer as to the true origin of the product.

& /en 108

2. Geographical indications listed in Annex 7-C shall not become generic name in the territories

of the Parties.

3. Nothing in this Agreement shall oblige a Party to protect a geographical indication of the

other Party, which is not, or ceases to be, protected in the territory of origin. Each Party shall notify

the other Party if a geographical indication ceases to be protected in the territory of that Party of

origin. Such notification shall take place in accordance with Article 136.

4. Nothing in this Agreement shall prejudice the right of any person to use, in the course of

trade, the name of that person or the name of the predecessor of that person in business, except

where such name is used in such a manner as to mislead the public.

ARTICLE 107

Right of use of geographical indications

1. A name protected under this Agreement may be used by any operator marketing a product

which conforms to the corresponding specification.

2. Once a geographical indication is protected under this Agreement, the use of such protected

name shall not be subject to any registration of users or further charges.

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ARTICLE 108

Relationship to trademarks

1. The Parties shall, where a geographical indication is protected under this Agreement, refuse to

register a trademark the use of which would be contrary to Article 106(1), provided an application

to register the trademark is submitted after the date of submission of the application for protection

of the geographical indication in the territory of the Party concerned.

2. Trademarks registered in breach of paragraph 1 shall be invalidated.

3. For geographical indications referred to in Article 104, the date of submission of the

application for protection referred to in paragraph 1 of this Article shall be the date of the

transmission of a request to the other Party to protect a geographical indication.

4. For geographical indications referred to in Article 105, the date of submission of the

application for protection referred to in paragraph 1 of this Article shall be the date of the

transmission of a request to the other Party to protect a geographical indication.

5. Without prejudice to paragraph 5 of this Article, each Party shall protect geographical

indications also where a prior trademark exists. A "prior trademark" means a trademark the use of

which is contrary to Article 106(1) and which has been applied for, registered or established by use,

if that possibility is provided for by the legislation concerned, in good faith in the territory of one

Party before the date on which the application for protection of the geographical indication is

submitted by the other Party under this Agreement.

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6. A prior trademark may continue to be used and renewed notwithstanding the protection of the

geographical indication, provided that no grounds for the invalidity or revocation of the trademark

exist in the Party's legislation on trademarks. In such cases, the use of the protected geographical

indication as well as the use of the relevant trademarks shall be permitted.

7. A Party shall not be required to protect a name as a geographical indication under this

Agreement if, in light of a trademark's reputation and renown and the length of time it has been

used, that name is liable to mislead the consumer as to the true identity of the product.

ARTICLE 109

Enforcement of geographical indication rights

The Parties shall enforce the protection provided for in Articles 104 to 108 by appropriate

administrative and judicial measures including at the custom control by their public authorities to

prevent or stop the unlawful use of a protected designation of origin and a protected geographical

indication. They shall also enforce such rights at the request of an interested party.

ARTICLE 110

General rules

1. This Agreement shall apply without prejudice to the rights and obligations of each Party that

it may have under the WTO Agreement.

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2. A Party shall not be required to protect a name as a geographical indication under this

Agreement if that name conflicts with the name of a plant variety or an animal breed and as a result

is likely to mislead the consumer as to the true origin of the product.

3. A homonymous name which misleads consumers into believing that a product comes from

another territory shall not be protected even if the name is accurate as far as the actual territory,

region or place of origin of the product in question is concerned. Without prejudice to Article 23 of

the TRIPS Agreement, the Parties shall mutually decide on the practical conditions of use under

which wholly or partially homonymous geographical indications will be differentiated from each

other, taking into account the need to ensure equitable treatment of the producers concerned and

that consumers are not misled.

4. When a Party, in the context of negotiations with a third party, proposes to protect a

geographical indication of that third party which is wholly or partially homonymous with a

geographical indication of the other Party protected under this Agreement, it shall inform the other

Party thereof and give it an opportunity to comment before the geographical indication of the third

party becomes protected.

5. Any matter arising from product specifications of protected geographical indications shall be

dealt with in the Intellectual Property Rights Sub-Committee referred to in Article 136.

6. The protection of geographical indications protected under this Agreement may only be

cancelled by the Party in which the product originates.

7. A product specification referred to in this Agreement shall be that which is approved,

including any amendments also approved, by the authorities of the Party in the territory from which

the product originates.

& /en 112

ARTICLE 111

Technical Assistance

For the purposes of facilitating the implementation of this Sub-section in the Republic of

Uzbekistan, the European Union shall provide to the Republic of Uzbekistan, subject to its request

and according to its needs, adequate technical assistance in conformity with European Union law.

SUB-SECTION 5

PATENTS

ARTICLE 112

International agreements

Each Party shall ensure that the procedures provided under the Patent Cooperation Treaty, done at

Washington on 19 June 1970, are available in its territory.

& /en 113

ARTICLE 113

Patents and public health

1. The Parties recognise the importance of the Declaration on the TRIPS Agreement and Public

Health, adopted in Doha on 14 November 2001 by the Ministerial Conference of the WTO (the

"Doha Declaration"). In interpreting and implementing the rights and obligations under this

Sub-Section, each Party shall ensure consistency with the Doha Declaration.

2. Each Party shall implement Article 31bis of the TRIPS Agreement, as well as the Annex to

the TRIPS Agreement and the Appendix to the Annex to the TRIPS Agreement, which entered into

force on 23 January 2017.

ARTICLE 114

Extension of the period of protection conferred by a patent on

medicinal products and plant protection products

1. The Parties recognise that medicinal products and plant protection products protected by a

patent in their respective territory may be subject to an administrative authorisation procedure

before being put on their market. The Parties recognise that the period that elapses between the

filing of the application for a patent and the first authorisation to place the product on their

respective market, as defined for that purpose by the relevant legislation, may shorten the period of

effective protection under the patent.

& /en 114

2. Each Party shall provide for a further period of protection for a medicinal product or plant

protection product which is protected by a patent, and which has been subject to an administrative

authorisation procedure for a period being equal to the period referred to in the second sentence of

paragraph 1. This period may be reduced by a period of up to five years.

3. The duration of the further period of protection shall not exceed five years.1

SUB-SECTION 6

PROTECTION OF UNDISCLOSED INFORMATION

ARTICLE 115

Scope of protection of trade secrets

1. In fulfilling its obligation to comply with the TRIPS Agreement, and in particular

Article 39(1) and (2) of the TRIPS Agreement, each Party shall provide for appropriate civil judicial

procedures and remedies for any trade secret holder to prevent, and obtain redress for, the

acquisition, use or disclosure of a trade secret whenever carried out in a manner contrary to honest

commercial practices.

1 In the case of medicinal products for which paediatric studies have been carried out, and the

results of those studies are reflected in the product information, a further period of protection

may be provided to the period of protection referred to in paragraph 2.

& /en 115

2. For the purpose of this Sub-Section, the following definitions apply:

(a) "trade secret" means information that:

(i) is secret in the sense that it is not, as a body or in the precise configuration and assembly

of its components, generally known among or readily generally accessible to persons

within the circles that normally deal with the kind of information in question;

(ii) has commercial value because it is secret; and

(iii) has been subject to reasonable steps under the circumstances, by the person lawfully in

control of the information, to keep it secret;

(b) "trade secret holder" means any natural or legal person lawfully controlling a trade secret.

3. For the purposes of this Sub-Section, at least the following conduct shall be considered

contrary to honest commercial practices:

(a) the acquisition of a trade secret without the consent of the trade secret holder, whenever

carried out by unauthorised access to, appropriation of, or copying of any documents, objects,

materials, substances or electronic files, lawfully under the control of the trade secret holder,

containing the trade secret or from which the trade secret can be deduced;

& /en 116

(b) the use or disclosure of a trade secret whenever carried out, without the consent of the trade

secret holder, by a person who is found to meet any of the following conditions:

(i) having acquired the trade secret in a manner referred to in point (a);

(ii) being in breach of a confidentiality agreement or any other duty not to disclose the trade

secret; or

(iii) being in breach of a contractual or any other duty to limit the use of the trade secret; and

(c) the acquisition, use or disclosure of a trade secret whenever carried out by a person who, at

the time of the acquisition, use or disclosure, knew or ought, under the circumstances, to have

known that the trade secret had been obtained directly or indirectly from another person who

was using or disclosing the trade secret unlawfully within the meaning of point (b).

4. Nothing in this Sub-Section shall be understood as requiring any Party to consider any of the

following conduct as contrary to honest commercial practices:

(a) the independent discovery or creation;

(b) the reverse engineering of a product by a person who is lawfully in possession of it and who is

free from any legally valid duty to limit the acquisition of the relevant information;

(c) the acquisition, use or disclosure of information required or allowed by the law of a Party; and

(d) the use by employees of their experience and skills honestly acquired in the normal course of

their employment.

& /en 117

5. Nothing in this subsection shall be understood as restricting freedom of expression and

information, including media freedom as protected in the jurisdiction of each of the Parties.

ARTICLE 116

Civil judicial procedures and remedies for trade secret holders

1. Each Party shall ensure that any person participating in the civil judicial proceedings referred

to in Article 115 or who has access to documents which form part of those legal proceedings, is not

permitted to use or disclose any trade secret or alleged trade secret which the competent judicial

authorities have, in response to a duly reasoned application by an interested party, identified as

confidential and of which they have become aware as a result of such participation or access.

2. In the civil judicial proceedings referred to in Article 115, each Party shall provide that its

judicial authorities have the authority at least to:

(a) order provisional measures in accordance with its respective laws and regulations to prevent

the acquisition, use or disclosure of the trade secret in a manner contrary to honest

commercial practices;

(b) order injunctive relief to prevent the acquisition, use or disclosure of the trade secret in a

manner contrary to honest commercial practices;

& /en 118

(c) order, in accordance with their respective laws and regulations, any person that knew or ought

to have known that he, she or it was acquiring, using or disclosing a trade secret in a manner

contrary to honest commercial practices to pay the trade secret holder damages appropriate to

the actual prejudice suffered as a result of such acquisition, use or disclosure of the trade

secret;

(d) take specific measures to preserve the confidentiality of any trade secret or alleged trade

secret produced in civil proceedings relating to the alleged acquisition, use and disclosure of a

trade secret in a manner contrary to honest commercial practices. Such specific measures may

include, in accordance with each Party's law, the possibility of:

(i) restricting access to certain documents in whole or in part;

(ii) restricting access to hearings and their corresponding records or transcript; and

(iii) making available a non-confidential version of judicial decision in which the passages

containing trade secrets have been removed or redacted; or

(e) impose sanctions on parties or any other persons participating in the legal proceedings who

fail or refuse to comply with the court orders concerning the protection of the trade secret or

alleged trade secret.

3. Neither Party shall be required to provide for the civil judicial procedures and remedies

referred to in Article 115 when the conduct contrary to honest commercial practices is carried out,

in accordance with the relevant law of a Party, to reveal misconduct, wrongdoing or illegal activity

or for the purpose of protecting a legitimate interest recognised by its law.

& /en 119

ARTICLE 117

Protection of data submitted to obtain an authorisation to put a medicinal product on the market

1. Each Party shall protect commercially confidential information submitted to obtain an

authorisation to place medicinal products on the market ("marketing authorisation") against

disclosure to third parties, unless steps are taken to ensure that the data are protected against unfair

commercial use or except where the disclosure is necessary for an overriding public interest.

2. Each Party shall ensure that, for a period of at least 6 years from the date of a first marketing

authorisation in the Party concerned ("first marketing authorisation"), the authority responsible for

the granting of a marketing authorisation does not accept any subsequent application for a

marketing authorisation that refers to the results of pre-clinical tests or clinical trials submitted in

the application for the first marketing authorisation without the explicit consent of the holder of the

first marketing authorisation, unless international agreements recognised by both Parties provide

otherwise. This rule shall apply regardless of whether or not the information referred to in

paragraphs 1 or 2 has been made available to the public.

3. This Article is without prejudice to additional periods of protection which each Party may

provide in its law.

4. With respect to the Republic of Uzbekistan, this Article shall apply two years after the entry

into force of this Agreement.

& /en 120

ARTICLE 118

Protection of data submitted to obtain marketing authorisation

for plant protection products

1. Each Party shall recognise a temporary right of the owner of a test report or of a study report

submitted for the first time to obtain a marketing authorisation for a plant protection product.

During such period, the test or study report shall not be used for the benefit of any other person

aiming to obtain a marketing authorisation for plant protection product, unless the explicit consent

of the first owner has been proved. This right will be hereinafter referred to as data protection.

2. The test or study report submitted for marketing authorisation of a plant protection product

should fulfil the following conditions:

(a) be necessary for the authorisation or an amendment of an authorisation in order to allow the

use on other crops; and

(b) be certified as compliant with the principles of good laboratory practice or good experimental

practice.

3. The period of data protection shall be at least 10 years from the first authorisation granted by

the relevant authority in the territory of that Party. For low-risk plant protection products the period

can be extended to 13 years.

& /en 121

4. The period of data protection shall be extended by 3 months for each extension of

authorisation for minor uses if the applications for such authorisations are made by the authorisation

holder at the latest 5 years after the date of the first authorisation. The total period of data protection

may in no case exceed 13 years. For low-risk plant protection products the total period of data

protection may in no case exceed 15 years.

5. A test or study report shall also be protected if it was necessary for the renewal or review of

an authorisation. In those cases, the period of data protection shall be 30 months.

6. Notwithstanding paragraphs 3, 4 and 5, the public body responsible for the granting of a

marketing authorisation shall not take into account the information referred to in paragraphs 1 and 2

for any successive marketing authorisation, regardless of whether or not it has been made available

to the public.

7. Each Party shall lay down measures obliging the applicant and holders of previous

authorisations established in the Parties' respective territories, to share proprietary information, so

as to avoid duplicative testing on vertebrate animals.

8. With respect to the Republic of Uzbekistan, this Article shall apply two years after the entry

into force of this Agreement.

& /en 122

SUB-SECTION 7

PLANT VARIETIES

ARTICLE 119

General provisions

Each Party shall protect plant variety rights, in accordance with the International Convention for the

Protection of New Varieties of Plants ("UPOV Convention") as lastly revised in Geneva on 19

March 1991including the optional exceptions to the breeder's right as referred to in Article 15(2) of

the UPOV Convention. The Parties shall co-operate to promote and enforce those rights.

& /en 123

SECTION 3

ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS

SUB-SECTION 1

CIVIL AND ADMINISTRATIVE ENFORCEMENT

ARTICLE 120

General obligations

1. Each Party reaffirms its commitment to comply with Part III of the TRIPS Agreement and

shall provide for the measures, procedures and remedies necessary to ensure the enforcement of

intellectual property rights.

For the purposes of Section 3, the term "intellectual property rights" shall not include rights covered

by Sub-Section 6 of Section 2.

2. The measures, procedures and remedies referred to in paragraph 1 shall

(a) be fair and equitable;

(b) not be unnecessarily complicated or costly or entail unreasonable time-limits or unwarranted

delays;

& /en 124

(c) be effective, proportionate and dissuasive;

(d) be applied in such a manner as to avoid the creation of barriers to legitimate trade and to

provide for safeguards against their abuse.

ARTICLE 121

Persons entitled to apply for the application of the measures, procedures and remedies

Each Party shall recognise as persons entitled to seek application of the measures, procedures and

remedies referred to in this Sub-section and in Part III of the TRIPS Agreement:

(a) the holders of intellectual property rights in accordance with the applicable law;

(b) all other persons authorised to use those rights, in particular licensees, in so far as permitted

by and in accordance with the applicable law;

(c) intellectual property collective rights management bodies which are regularly recognised as

having a right to represent holders of intellectual property rights, in so far as permitted by and

in accordance with the applicable law;

(d) professional defence bodies which are regularly recognised as having a right to represent

holders of intellectual property rights, in so far as permitted by and in accordance with the

applicable law.

& /en 125

ARTICLE 122

Evidence

1. Each Party shall ensure that, even before the commencement of proceedings on the merits of

the case, the competent judicial authorities may, on application by a party who has presented

reasonably available evidence to support his or her claims that his or her intellectual property right

has been infringed or is about to be infringed, order prompt and effective provisional measures to

preserve relevant evidence in respect of the alleged infringement, subject to the protection of

confidential information. In ordering interim or provisional measures, the judicial authorities shall

take into account the legitimate interests of the alleged infringer.

2. Such measures may include the detailed description, with or without the taking of samples, or

the physical seizure of the alleged infringing goods, and, in appropriate cases, the materials and

implements used in the production or distribution of these goods and the documents relating thereto.

3. Each Party shall take the measures necessary, in cases of infringement of an intellectual

property right committed on a commercial scale, to enable the competent judicial authorities to

order, where appropriate, on application by a party, the communication of banking, financial or

commercial documents under the control of the opposing party, subject to the protection of

confidential information.

& /en 126

ARTICLE 123

Right of information

1. Each Party shall ensure that, during civil proceedings concerning an infringement of an

intellectual property right and in response to a justified and proportionate request of the claimant,

the competent judicial authorities may order the infringer or any other person which is party to a

litigation or a witness therein to provide information on the origin and distribution networks of the

goods or services which infringe an intellectual property right.

2. For the purposes of paragraph, 1 "any other person" means a person who was:

(a) found in possession of the infringing goods on a commercial scale;

(b) found to be using the infringing services on a commercial scale;

(c) found to be providing on a commercial scale services used in infringing activities; or

(d) indicated by the person referred to in point (a), (b) or (c) in this paragraph as being involved

in the production, manufacture or distribution of the goods or the provision of the services.

& /en 127

3. Information referred to in paragraph 1 shall, as appropriate, comprise:

(a) the names and addresses of the producers, manufacturers, distributors, suppliers and other

previous holders of the goods or services, as well as the intended wholesalers and retailers; or

(b) information on the quantities produced, manufactured, delivered, received or ordered, as well

as the price obtained for the goods or services in question.

4. Paragraphs 1 and 2 shall apply without prejudice to other laws of a Party which:

(a) grants the right-holder rights to receive fuller information;

(b) governs the use in civil proceedings of the information communicated pursuant to this Article;

(c) govern responsibility for misuse of the right of information;

(d) afford an opportunity for refusing to provide information which would force the person

referred to in paragraph 1 to admit his or her own participation or that of his or her close

relatives in an infringement of an intellectual property right; or

(e) govern the protection of confidentiality of information sources or the processing of personal

data.

& /en 128

ARTICLE 124

Provisional and precautionary measures

1. Each Party shall ensure that the judicial authorities may, at the request of the applicant, issue

against the alleged infringer an interlocutory injunction intended to prevent any imminent

infringement of an intellectual property right, or to forbid, on a provisional basis and subject, where

appropriate, to a recurring penalty payment where provided for by domestic law, the continuation of

the alleged infringements of that right, or to make such continuation subject to the lodging of

guarantees intended to ensure the compensation of the right holder. An interlocutory injunction may

also be issued, under the same conditions, against an intermediary whose services, including

internet services, are being used by a third party to infringe an intellectual property right.

2. An interlocutory injunction may also be issued to order the seizure or delivery up of goods

suspected of infringing an intellectual property right, so as to prevent their entry into or movement

within the channels of commerce.

3. In the case of an alleged infringement committed on a commercial scale, each Party shall

ensure that, if the applicant demonstrates circumstances likely to endanger the recovery of damages,

the judicial authorities may order the precautionary seizure of the movable and immovable property

of the alleged infringer, including the blocking of his or her bank accounts and other assets. To that

end, the competent authorities may order the communication of bank, financial or commercial

documents, or appropriate access to the relevant information.

& /en 129

ARTICLE 125

Remedies

1. Each Party shall ensure that the judicial authorities may order, at the request of the applicant

and without prejudice to any damages due to the right holder by reason of the infringement, and

without compensation of any sort, the destruction or at least the definitive removal from the

channels of commerce, of goods that they have found to be infringing an intellectual property right.

If appropriate, the judicial authorities may also order the destruction of materials and implements

predominantly used in the creation or manufacture of those goods.

2. Each Party's judicial authorities shall have the authority to order that the remedies referred to

in paragraph 1 shall be carried out at the expense of the infringer, unless particular reasons are

invoked for not doing so.

3. In considering a request for remedies the need for proportionality between the seriousness of

the infringement and the remedies ordered as well as the interests of third parties shall be taken into

account.

4. With respect to the Republic of Uzbekistan, paragraph 1 shall apply three years after the date

of entry into force of this Agreement.

& /en 130

ARTICLE 126

Injunctions

Each Party shall ensure that, where a judicial decision is taken finding an infringement of an

intellectual property right, the judicial authorities may issue against the infringer as well as against

an intermediary whose services are used by a third party to infringe an intellectual property right an

injunction aimed at prohibiting the continuation of the infringement.

ARTICLE 127

Alternative measures

Each Party may provide that the judicial authorities, in appropriate cases and at the request of the

person liable to be subject to the measures provided for in Article 125 or Article 126, may order

pecuniary compensation to be paid to the injured party instead of applying the measures provided

for in those Articles if that person acted unintentionally and without negligence, if execution of the

measures in question would cause him disproportionate harm and if pecuniary compensation to the

injured party appears reasonably satisfactory.

& /en 131

ARTICLE 128

Damages

1. Each Party shall ensure that the judicial authorities, on application of the injured party, order

the infringer who knowingly, or with reasonable grounds to know, engaged in an infringing activity

to pay the right-holder damages appropriate to the actual prejudice suffered by the right-holder as a

result of the infringement.

2. Each Party shall ensure that when the judicial authorities set the damages referred to in

paragraph 1:

(a) they shall take into account all appropriate aspects, such as the negative economic

consequences, including lost profits, which the injured party has suffered, any unfair profits

made by the infringer and, in appropriate cases, elements other than economic factors, such as

the moral prejudice caused to the right holder by the infringement; or

(b) as an alternative to point (a), they may, in appropriate cases, set the damages as a lump sum

on the basis of elements such as at least the amount of royalties or fees which would have

been due if the infringer had requested authorisation to use the intellectual property right in

question.

3. Where the infringer did not knowingly, or with reasonable grounds to know, engage in

infringing activity, the Parties may lay down that the judicial authorities may order in favour of the

injured party the recovery of profits or the payment of damages which may be pre-established.

& /en 132

ARTICLE 129

Legal costs

Each Party shall ensure that reasonable and proportionate legal costs and other expenses incurred by

the successful party shall, as a general rule, be borne by the unsuccessful party, unless equity does

not allow this.

ARTICLE 130

Publication of judicial decisions

Each Party shall ensure that, in legal proceedings instituted with regard to infringement of an

intellectual property right, the judicial authorities may order, at the request of the applicant and at

the expense of the infringer, appropriate measures for the dissemination of the information

concerning the decision, including displaying the decision and publishing it in full or in part.

& /en 133

ARTICLE 131

Presumption of authorship or ownership

The Parties shall recognise that for the purposes of applying the measures, procedures and remedies

provided for in this Section 3:

(a) for the author of a literary or artistic work, in the absence of proof to the contrary, to be

regarded as such, and consequently to be entitled to institute infringement proceedings, it shall

be sufficient for his/her name to appear on the work in the usual manner; and

(b) the provision under (a) applies mutatis mutandis to the holders of rights related to copyright

with regard to their protected subject matter.

ARTICLE 132

Administrative procedures

To the extent that any civil remedy can be ordered as a result of administrative procedures on the

merits of a case, such procedures shall conform to principles equivalent in substance to those set

forth in the relevant provisions of this section.

& /en 134

SUB-SECTION 2

BORDER ENFORCEMENT

ARTICLE 133

Border measures

1. With respect to goods under customs control, each Party shall adopt or maintain procedures

under which a right-holder may submit applications requesting customs authorities to suspend the

release of or detain goods suspected of infringing trademarks, copyrights and related rights,

geographical indications, patents, utility models, industrial designs, topographies of integrated

circuits and plant variety rights (hereinafter referred to as 'suspected goods').

2. Each Party shall have in place electronic systems for the management by its customs

authorities of the applications granted or recorded.

3. When a Party charges a fee to cover the administrative costs resulting from the application or

recordation, that fee shall be proportionate to the service rendered and the cost incurred.

4. Each Party shall ensure that its customs authorities decide about granting or recording

application within a reasonable period of time.

5. Each Party may provide for the applications referred to in paragraph 1 to apply to multiple

shipments.

& /en 135

6. Each Party shall ensure that, with respect to goods under customs control, its customs

authorities may act upon their own initiative to suspend the release or detain suspected goods.

7. Each Party shall ensure that its customs authorities use risk analysis to identify suspected

goods in addition to other methods of identification as necessary.

8. A Party may adopt or maintain procedures by which its competent authorities may determine,

within a reasonable period after the initiation of the procedures referred to in paragraphs 1 and 5,

whether the suspected goods are infringing. In such case, the competent authorities shall have the

authority to order the destruction of goods following a determination that the goods are infringing.

A Party may have in place procedures allowing for the destruction of suspected goods without there

being any need for the formal determination on the infringement, where the persons concerned

agree or do not oppose to destruction.

9. Each Party may have in place procedures allowing for the swift destruction of counterfeit

trademark and pirated goods sent in postal or express couriers' consignments.

10. Each Party may decide not to apply this Article to the import of goods put on the market in

another country by or with the consent of the right-holders. A Party may exclude from the

application of this Article goods of a non-commercial nature contained in travellers' personal

luggage.

11. Each Party shall ensure that its customs authorities maintain a regular dialogue and promote

cooperation with the relevant stakeholders and with other authorities involved in the enforcement of

intellectual property rights.

& /en 136

12. The Parties agree to cooperation in respect of international trade in suspected goods. In

particular, the Parties agree to share information on trade in suspected goods affecting the other

Party.

13. Without prejudice to other forms of cooperation, the Protocol on mutual administrative

assistance in customs matters shall be applicable with regard to breaches of legislation on

intellectual property rights for the enforcement of which the customs authorities are competent in

accordance with this Article.

14. The Sub-Committee referred to in Article 136 shall be responsible for ensuring the proper

functioning and implementation of this Article, in particular in terms of cooperation between the

Parties.

15. In implementing border measures for the enforcement of intellectual property rights by

customs authorities, whether or not covered by this Sub-Section, the Parties shall ensure

consistency and comply with Article V of GATT 1994 and Article 41 and Section 4 of the Part III

of the TRIPS Agreement.

& /en 137

SECTION 4

FINAL PROVISIONS

ARTICLE 134

Cooperation

1. The Parties shall agree to cooperate with a view to supporting the implementation of the

commitments and obligations undertaken under this Chapter. The Parties shall draw on the

following modalities, among others, with respect to cooperation on intellectual property rights

protection and enforcement matters.

2. The areas of cooperation include, but are not limited to, the following activities:

(a) exchange of information on the legal framework concerning intellectual property rights and

relevant rules of protection and enforcement;

(b) exchange of experience between the Parties on legislative progress;

(c) exchange of experience between the Parties on the enforcement of intellectual property rights;

(d) exchange of experiences between the Parties on enforcement at central and sub-central level

by customs, police, administrative and judiciary bodies;

& /en 138

(e) coordination to prevent exports of counterfeit goods, including with other countries;

(f) technical assistance, capacity building; exchange and training of personnel;

(g) protection and defence of intellectual property rights and the dissemination of information in

this regard in, inter alia, business circles and civil society;

(h) public awareness of consumers and right holders; enhancement of institutional cooperation,

particularly between the intellectual property offices;

(i) awareness promotion and education of the general public on policies concerning the

protection and enforcement of intellectual property rights;

(j) promotion of protection and enforcement of intellectual property rights with public-private

collaboration involving SMEs; and

(k) formulation of effective strategies to identify audiences and communication programmes to

increase consumer and media awareness on the impact of violations of intellectual property

rights, including the risk to health and safety and the connection to organised crime.

3. Each Party may make publicly available the product specifications, or a summary thereof, and

relevant contact points for control or management of geographical indications of the other Party

protected pursuant to Sub-Section 4.

4. The Parties shall, either directly or through the Sub-Committee referred to in Article 136,

maintain contact on all matters related to the implementation and functioning of this Section.

& /en 139

ARTICLE 135

Voluntary stakeholder initiatives

Each Party shall endeavour to facilitate voluntary stakeholder initiatives to reduce the infringement

of intellectual property rights, including online and in other marketplaces, focusing on concrete

problems and seeking practical solutions that are realistic, balanced proportionate and fair for all

concerned including in the following ways:

(a) each Party shall endeavour to convene stakeholders consensually in its territory to facilitate

voluntary initiatives to find solutions and resolve differences regarding the protection and

enforcement of intellectual property rights and reducing infringement;

(b) the Parties shall endeavour to exchange information with each other regarding efforts to

facilitate voluntary stakeholder initiatives in their respective territories; and

(c) the Parties shall endeavour to promote open dialogue and cooperation among the stakeholders

in the Parties, and to encourage those stakeholders to jointly find solutions and resolve

differences regarding the protection and enforcement of intellectual property rights and

reducing infringement.

& /en 140

ARTICLE 136

Institutional provisions

1. The Parties hereby establish an Intellectual Property Rights Sub-Committee (hereinafter

referred to as the 'IPR Sub-Committee') consisting of representatives of the European Union and the

Republic of Uzbekistan with the purpose of monitoring the implementation of this Chapter and of

intensifying their cooperation and dialogue on intellectual property rights.

2. The IPR Sub-Committee shall meet at the request of either Party, alternately in the European

Union and in the Republic of Uzbekistan, at a time and a place and in a manner agreed by the

Parties, which may include by videoconference, but no later than 90 days after the request has been

submitted.

3. The IPR Sub-Committee shall facilitate the implementation of this Chapter and the

cooperation between the Parties in all matters related to intellectual property. In particular, it shall

be responsible for amending:

(a) Section A of Annex 7-A as regards the references to the law applicable in the Parties;

(b) Section B of Annex 7-A as regards the elements for registration and control of geographical

indications;

(c) Annex 7-B as regards the criteria to be included in the objection procedure; and

(d) Annex 7-C as regards geographical indications.

& /en 141

CHAPTER 8

COMPETITION AND STATE-OWNED ENTERPRISES

SECTION A

COMPETITION

ARTICLE 137

Principles

The Parties recognise the importance of free and undistorted competition in their trade and

investment relations. The Parties acknowledge that anticompetitive business practices and State

interventions have the potential to distort the proper functioning of markets and undermine the

benefits of trade and investment liberalisation.

ARTICLE 138

Competitive neutrality

Each Party shall apply this Chapter to all enterprises, public or private.

& /en 142

SUB-SECTION 1

ANTICOMPETITIVE CONDUCT AND MERGER CONTROL

ARTICLE 139

Legislative framework

Each Party shall adopt or maintain competition law which applies to all enterprises in all sectors of

the economy1 and addresses, in an effective manner, the following practices:

(a) horizontal and vertical agreements between enterprises, decisions by associations of

enterprises and concerted practices which have as their object or effect the prevention,

restriction or distortion of competition;

(b) the abuse by one or more enterprises of a dominant position; and

(c) concentrations between enterprises which would significantly impede effective competition,

in particular as a result of the creation or strengthening of a dominant position.

1 For greater certainty, pursuant to Article 42 of the Treaty on the Functioning of the European

Union, competition rules in the EU apply to the agricultural sector in accordance with

Regulation (EU) No 1308/2013 of the European Parliament and Council establishing a

common organisation of the markets in agricultural products and its subsequent amendments

or replacements, if any (OJEU L347/2013).

& /en 143

ARTICLE 140

Tasks of public economic interest

The application of competition law by a Party should not obstruct the performance, in law or in fact,

of the particular tasks of public interest that may be assigned to enterprises. Exemptions to the

competition law of a Party should be limited to tasks of public interest, and to what it is necessary to

achieve the desired public policy objective and be transparent.

ARTICLE 141

Implementation

1. Each Party shall establish and maintain an operationally independent authority which is

responsible for, and appropriately equipped with the powers and resources necessary to ensure, the

full application and effective enforcement of its competition law.

2. Each Party shall apply its competition law in a transparent manner, respecting the principles

of procedural fairness, including the rights of defence of the enterprises concerned, in particular the

right to be heard and the right to judicial review.

& /en 144

ARTICLE 142

Cooperation

1. The Parties acknowledge that it is in their common interest to promote cooperation with

regard to competition policy and enforcement.

2. To facilitate such cooperation, the competition authorities of the Parties may exchange

information, subject to the confidentiality rules under the Parties' respective law.

3. The competition authorities of the Parties shall endeavour to coordinate, where possible and

appropriate, their enforcement activities relating to the same or related conduct or cases.

ARTICLE 143

Non-application of dispute settlement

Chapter 14 does not apply to this Section.

& /en 145

SUB-SECTION 2

SUBSIDIES

ARTICLE 144

Definition and scope

1. For the purposes of this Section, "a subsidy" means a measure which fulfils the conditions set

out in paragraph 1.1 of Article 1 of the SCM Agreement, irrespective of whether it is granted to an

enterprise, supplying goods or services.1

2. This Section applies to subsidies that are specific within the meaning of Article 2 of the SCM

Agreement. Any subsidy falling under the provisions of Article 148 of this Agreement is deemed to

be specific.

3. The provisions of this Section shall not be construed in a manner obstructing the performance,

in law or in fact, of the particular tasks of public interest that may be assigned to the enterprises.

Exemptions to from the rules of this section should be limited to tasks of public interest and to what

it is necessary to achieve the public policy objective and transparent.

1 For greater certainty, this definition is without prejudice to the outcome of any future

discussions in the WTO on the definition of subsidies for services. Depending on the progress

of those discussions at the WTO level, the Parties may update this Agreement in this respect.

& /en 146

4. Article 146 of this Agreement does not apply to subsidies related to trade in goods covered by

Annex 1 to the Agreement on Agriculture.

5. Articles 146 and 147 do not apply to the audio-visual sector and the tourism sector.

ARTICLE 145

Transparency

1. Each Party shall, with respect to a subsidy granted or maintained within its territory, make the

following information public:

(a) the legal basis and purpose of the subsidy;

(b) the form of the subsidy;

(c) if possible, the total amount or the annual amount budgeted for the subsidy and the name of

the recipient of the subsidy;

2. A Party may comply with paragraph 1 by:

(a) submitting a notification pursuant to Article 25 of the SCM Agreement, which is provided at

least every two years;

& /en 147

(b) submitting a notification pursuant to Article 18 of the Agreement on Agriculture; or1,

(c) ensuring that the information referred to in paragraph 1 is published by itself or on its behalf

on a publicly accessible website by 31 December of the calendar year subsequent to the year

in which the subsidy was granted or maintained.

ARTICLE 146

Consultations

1. If a Party considers that a subsidy is adversely affecting or is likely to adversely affect its

trade or investment liberalisation interests, it may express its concern in writing to the other Party

and request further information on the matter.

2. The request referred to in paragraph 1 shall include an explanation of how the subsidy may

adversely affect the requesting Party's interests. The requesting Party may seek the following

information about the subsidy:

(a) the legal basis for and purpose of the subsidy;

(b) the form of the subsidy;

(c) the dates and duration of the subsidy and any other time limits attached to it;

1 For greater clarity the notification requirements under points (a) and (b) of Article 145.2 will

apply in respect of the Republic of Uzbekistan as of its date of accession to the WTO.

& /en 148

(d) the eligibility requirements for the subsidy;

(e) if possible, the total amount or the annual amount budgeted for the subsidy and the name of

the recipient of the subsidy;

(g) any other information permitting an assessment of the potentially adverse effects of the

subsidy.

3. The requested Party shall provide the information in writing no later than 60 days after the

date of delivery of the request. In the event that the requested Party does not provide the requested

information, that Party shall explain the absence of such information in its written response.

4. After having received the requested information, the requesting Party may request

consultations on the matter. Consultations between the Parties to discuss the concerns raised shall

be held within 60 days of the request for consultations.

5. Each Party will endeavour to arrive at a mutually satisfactory resolution of the matter.

& /en 149

ARTICLE 147

Subsidies subject to conditions

1. To the extent that a subsidy adversely affects trade or investment of the other Party, each

Party shall endeavour to apply conditions to subsidies as follows:

(a) subsidies whereby a government guarantees debts or liabilities of certain enterprises are

allowed, provided that the amount of those debts and liabilities or the duration of such

guarantee are limited; and

(b) subsidies to insolvent or ailing enterprises are allowed, provided that:

(i) there is a credible restructuring plan based on realistic assumptions with a view to

ensuring the return to long-term viability of the insolvent or ailing enterprise within a

reasonable time period; or

(ii) the enterprise contributes to the costs of restructuring; small and medium-sized

enterprises are not obliged to contribute to the costs of restructuring.

2. Point (b) of paragraph 1 does not apply to subsidies provided to enterprises as temporary

liquidity support in the form of loan guarantees or loans during the period which is necessary to

prepare a restructuring plan. Such temporary liquidity support shall be limited to the amount needed

to merely keep the enterprise in business.

3. Subsidies to ensure the orderly market exit of a company shall be allowed.

& /en 150

4. This Article does not apply to subsidies the cumulative amounts or budgets of which are less

than 500 000 euros per enterprise over a period of three consecutive years.

ARTICLE 148

Prohibited subsidies

From the accession of the Republic of Uzbekistan to the WTO, except as provided in the

Agreement on Agriculture, the following subsidies on industrial goods shall be prohibited:

(a) subsidies contingent, in law or in fact1 whether solely or as one of several other conditions,

upon export performance; and

(b) subsidies contingent, whether solely or as one of several other conditions, upon the use of

domestic over imported goods.

ARTICLE 149

Use of subsidies

Each Party shall ensure that enterprises use subsidies only for the purpose for which the subsidies

were granted.

1 This standard is met when the facts demonstrate that the granting of a subsidy, without

having been made legally contingent upon export performance, is in fact tied to actual or

anticipated exportation or export earnings. The mere fact that a subsidy is granted to

enterprises which export shall not for that reason alone be considered to be an export

subsidy within the meaning of this provision.

& /en 151

SECTION B

STATE-OWNED ENTERPRISES,

ENTERPRISES GRANTED SPECIAL RIGHTS OR PRIVILIGES

AND DESIGNATED MONOPOLIES

ARTICLE 150

Definitions

For the purposes of this Section:

1. "Arrangement" means the Arrangement on Officially Supported Export Credits of the

Organisation for Economic Co-operation and Development (hereinafter referred to as "OECD") or a

successor undertaking, whether developed within or outside of the OECD framework that has been

adopted by at least 12 original WTO Members that were Participants to the Arrangement as of 1

January 1979;

2. "commercial activities" means activities the end result of which is the production of a good or

supply of a service which will be sold in quantities and at prices determined by an enterprise, and

are undertaken with an orientation towards profit-making1;

1 For greater certainty, activities undertaken by an enterprise which operates on a non-profit

basis or a cost-recovery basis are not activities undertaken with an orientation towards profit-

making

& /en 152

3. "commercial considerations" means price, quality, availability, marketability, transportation

and other terms and conditions of purchase or sale; or other factors that would normally be taken

into account in commercial decisions of a privately owned enterprise operating according to market

economy principles in the relevant business or industry;

4. "designate" means to establish or authorise a monopoly, or to expand the scope of a monopoly

to cover an additional good or service;

5. "designated monopoly" means an entity, including a consortium or a government agency, that

in a relevant market in the territory of a Party is designated as the sole supplier or purchaser of a

good or service, but does not include an entity that has been granted an exclusive intellectual

property right solely by reason of such granting;

6. "enterprise granted special rights or privileges" means an enterprise, public or private, to

which a Party has granted, in law or in fact, special rights or privileges by designating or limiting to

two or more the number of enterprises authorised to supply a good or a service, other than

according to objective, proportional and non-discriminatory criteria, in a way that substantially

affects the ability of any other enterprise to supply the same good or service in the same

geographical area under substantially equivalent conditions;

7. "service supplied in the exercise of governmental authority" means a service supplied in the

exercise of governmental authority as defined in GATS including, if applicable, in the Annex on

Financial Services to GATS; and

& /en 153

8. "state-owned enterprise" means an enterprise in which a Party:

(a) directly owns more than 50 per cent of the share capital;

(b) controls the exercise of more than 50 per cent of the voting rights directly or otherwise

exercises an equivalent degree of control through voting rigths;

(c) holds the power to appoint a majority of the members of the board of directors or any other

equivalent management body; or

(d) has the power to exercise control1 over the enterprise;

ARTICLE 151

Scope

1. This Section applies to state-owned enterprises, enterprises granted special rights or privileges

and designated monopolies engaged in a commercial activity. Where such enterprises or

monopolies engage in both commercial and non-commercial activities, only the commercial

activities are covered by this Section.

2. This Section applies to state-owned enterprises, enterprises granted special rights or privileges

and designated monopolies at all levels of government.

1 For greater certainty, for the establishment of control, all relevant legal and factual elements

are be taken into account on a case by case basis.

& /en 154

3. This Section does not apply to state-owned enterprises, enterprises granted special rights or

privileges or designated monopolies when they act as procuring entities covered by a Party's

annexes to Appendix I to the Agreement on Government Procurement, done at Marrakesh

on 15 April 1994, contained in Annex 4 to the WTO Agreement1 or by Annex 9-A to this

Agreement, when that procurement is purchased for governmental purposes and not with a view to

commercial resale of the goods or services procured or with a view to use the goods or the services

procured in the supply of a good or service for commercial sale.

4. This Section does not apply to any service supplied in the exercise of governmental authority.

5. Article 154 does not apply to the supply of financial services by a state-owned enterprise

pursuant to a government mandate if that supply of financial services:

(a) supports exports or imports, provided that the services are:

(i) not intended to displace commercial financing, or

(ii) offered on terms no more favourable than those that could be obtained for comparable

financial services in the commercial market;

(b) supports private investment outside the territory of the Party, provided that the services are:

(i) not intended to displace commercial financing, or

(ii) offered on terms no more favourable than those that could be obtained for comparable

financial services in the commercial market; or

1 The Republic of Uzbekistan is not a party to the GPA [EU: at the date of signature of this

Agreement].

& /en 155

(c) offered on terms consistent with the Arrangement, provided that it falls within the scope of

the Arrangement.

6. Article 154 does not apply to the services sectors outside the scope of this Agreement as set

out in Chapter 12.

7. Without prejudice to Article 190, Article 154 does not apply to purchases and sales of goods

or services by a state-owned enterprise, an enterprise granted special rights or privileges or a

designate monopoly of a Party in the sectors covered by the reservations listed in Annex 12-D or

the GATS schedules of specific commitments of the European Union and Annexes 12-A, 12-B

and 12-C.

ARTICLE 152

Relation to the WTO Agreement

1. Paragraphs 1 to 3 of Article XVII of GATT 1994, the Understanding on the Interpretation of

Article XVII of GATT 1994 and paragraphs 1, 2 and 5 of Article VIII of GATS are hereby

incorporated into and made part of this Agreement, mutatis mutandis.

2. This Article shall apply as from the date of accession of the Republic of Uzbekistan to the

WTO or six years after the date of entry into force of this Agreement, whichever comes first.

& /en 156

ARTICLE 153

General provisions

1. Without prejudice to the rights and obligations of each Party under this Section, nothing in

this Section prevents a Party from establishing or maintaining state-owned enterprises, granting

enterprises special rights or privileges, or designating or maintaining monopolies.

2. Neither Party shall require or encourage a state-owned enterprise, an enterprise granted

special rights or privileges or a designated monopoly to act in a manner inconsistent with this

Section.

ARTICLE 154

Non-discriminatory treatment and commercial considerations

1. Each Party shall ensure that its state-owned enterprises, enterprises granted special rights or

privileges or designated monopolies, when engaging in commercial activities in their purchases or

sales of goods or services act in accordance with commercial considerations, except to fulfil any

terms of their public service mandate that are not inconsistent with paragraph (2).

& /en 157

2. Each Party shall ensure that its state-owned enterprises, enterprises granted special rights or

privileges or designated monopolies, when engaging in commercial activities:

(a) in their purchase of a good or a service:

(i) accord to a good or a service supplied by an enterprise of the other Party treatment no

less favourable than that which they accord to a like good or a like service supplied by

enterprises of the Party;

(ii) accord to a good or a service supplied by enterprises that are investments of investors of

the other Party treatment no less favourable than that which they accord to a like good

or a like service supplied by enterprises that are investments of investors of the Party in

the relevant market in the Party; and

(b) in their sale of a good or a service:

(i) accord to an enterprise of the other Party treatment no less favourable than that which

they accord to enterprises of the Party; and

(ii) accord to enterprises that are investments of investors of the other Party treatment no

less favourable than that which they accord to enterprises that are investments of

investors of the Party in the relevant market in the Party.

& /en 158

3. Paragraphs 1 and 2 do not preclude state-owned enterprises, enterprises granted special rights

or privileges or designated monopolies enterprises from:

(a) purchasing or supplying goods or services on different terms or conditions, including those

relating to price, provided that such different terms or conditions or refusal is undertaken in

accordance with commercial considerations; or

(b) refusing to purchase or supply goods or services, provided that such different terms or

conditions or refusal is undertaken in accordance with commercial considerations.

4. This Article shall apply eight years after the date of entry into force of this Agreement.

ARTICLE 155

Regulatory framework

1. Each Party makes best use of relevant international standards including the OECD Guidelines

on Corporate Governance of State-Owned Enterprises.

2. Each Party shall ensure that any regulatory body or any other body exercising a regulatory

function that it establishes or maintains,

(a) is independent of, and not accountable to, any of the enterprises regulated by that body, and

& /en 159

(b) acts impartially1 with respect to all enterprises regulated by that body, including state-owned

enterprises, enterprises granted special rights or privileges and designated monopolies.2

3. Without prejudice to their reservation in [Annexes Services/Investment], Each Party shall

apply its laws and regulations to state-owned enterprises, enterprises granted special rights or

privileges and designated monopolies in a consistent and non-discriminatory manner.

ARTICLE 156

Information exchange

1. A Party which considers that its interests under this Section are being adversely affected by

the commercial activities of a state-owned enterprise, an enterprise granted special rights or

privileges or a designated monopoly (hereinafter referred to in this Article as "the entity") of the

other Party may request the other Party to provide in writing information on the commercial

activities of the entity related to the implementation of this Section, in accordance with paragraph 2.

1 For greater certainty, the impartiality with which the body exercises its regulatory functions is

to be assessed by reference to a general pattern or practice of that body. 2 For greater certainty, for those sectors in which the Parties have agreed to specific obligations

relating to such a body in other Chapters, the relevant provisions of those Chapters shall

prevail.

& /en 160

2. The requested Party shall provide the following information, provided that the request

includes an explanation of how the activities of the entity may be affecting the interests of the

requesting Party under this Section and indicates which of the following information shall be

provided:

(a) the ownership and the voting structure of the entity, indicating the percentage of shares that

the requested Party, its state-owned enterprises, enterprises granted special rights or privileges

or designated monopolies cumulatively own, and the percentage of voting rights that they

cumulatively hold, in the entity;

(b) a description of any preferred or special shares or special voting or other rights that the

requested Party, its state-owned enterprises, enterprises granted special rights or privileges or

designated monopolies hold, where such rights are different from those attached to the general

common shares of the entity;

(c) a description of the organisational structure of the entity and its composition of the board of

directors or of any other equivalent body;

(d) a description of the government departments or public bodies that regulate or monitor the

entity, a description of the reporting requirements imposed on it by those departments or

bodies, and the rights and practices of those departments or bodies with respect to the

appointment, dismissal or remuneration of senior executives and members of the board of

directors or any other equivalent management body of the entity;

(e) annual revenue and total assets of the entity over the most recent three-year period for which

information is available;

& /en 161

(f) any exemptions, immunities and related measures from which the entity benefits under the

laws and regulations of the requested Party; and

(g) any additional information regarding the entity that is publicly available, including annual

financial reports and third party audits.

3. The provisions of paragraphs 1 and 2 shall not require a Party to disclose confidential

information the disclosure of which would be inconsistent with its laws and regulations, impede law

enforcement, or otherwise be contrary to the public interest, or would prejudice the legitimate

commercial interests of particular enterprises.

4. If the requested information is not available to the requested Party, that Party shall provide the

reasons for this in writing to the other Party who requested the information.

5. This Article does not apply to small and medium-sized enterprises.

& /en 162

CHAPTER 9

GOVERNMENT PROCUREMENT

ARTICLE 157

Definitions

For the purposes of this Chapter:

(a) "commercial goods or services" means goods or services of a type generally sold or offered

for sale in the commercial marketplace to, and customarily purchased by, non-governmental

buyers for non-governmental purposes;

(b) "construction service" means a service that has as its objective the realisation by whatever

means of civil or building works, based on Division 51 of the United Nations Provisional

Central Product Classification (CPC);

(c) "electronic auction" means an iterative process that involves the use of electronic means for

the presentation by suppliers of either new prices, or new values for quantifiable non-price

elements of the tender related to the evaluation criteria, or both, resulting in a ranking or

re-ranking of tenders;

(d) "in writing" or "written" means any worded or numbered expression that can be read,

reproduced and later communicated. It may include electronically transmitted and stored

information;

& /en 163

(e) "limited" tendering means a procurement method whereby the procuring entity contacts a

supplier or suppliers of its choice;

(f) "measure" means any law, regulation, procedure, administrative guidance or practice, or any

action of a procuring entity relating to a covered procurement;

(g) "multi-use list" means a list of suppliers that a procuring entity has determined satisfy the

conditions for participation in that list, and that the procuring entity intends to use more than

once;

(h) "notice of intended procurement" means a notice published by a procuring entity inviting

interested suppliers to submit a request for participation, a tender, or both;

(i) "offset" means any condition or undertaking that encourages local development or improves a

Party's balance-of-payments accounts, such as the use of domestic content, the licensing of

technology, investment, counter-trade and similar action or requirement;

(j) "open tendering" means a procurement method whereby all interested suppliers may submit a

tender;

(k) "procuring entity" means an entity covered by Section 1, 2 or 3 of Annex 9;

(l) "qualified supplier" means a supplier that a procuring entity recognises as having satisfied the

conditions for participation;

(m) "selective tendering" means a procurement method whereby only qualified suppliers are

invited by the procuring entity to submit a tender;

& /en 164

(n) "services" includes construction services, unless otherwise specified;

(o) "standard" means a document approved by a recognised body that provides for common and

repeated use, rules, guidelines or characteristics for goods or services, or related processes and

production methods, with which compliance is not mandatory, and that may also include or

deal exclusively with terminology, symbols, packaging, marking or labelling requirements as

they apply to a good, service, process or production method;

(p) "supplier" means a person or group of persons that provides or could provide goods or

services; and

(q) "technical specification" means a tendering requirement that:

(i) lays down the characteristics of goods or services to be procured, including quality,

performance, safety and dimensions, or the processes and methods for their production

or provision; or

(ii) addresses terminology, symbols, packaging, marking or labelling requirements, as they

apply to a good or service.

ARTICLE 158

Scope and coverage

Application of Agreement

1. This Chapter shall apply ten years after the date of entry into force of this Agreement.

& /en 165

2. This Chapter applies to any measure relating to a covered procurement, whether or not it is

conducted exclusively or partially by electronic means.

3. For the purposes of this Chapter, "covered procurement" means procurement for

governmental purposes:

(a) of a good, a service, or any combination thereof:

(i) as specified in Annex 9; and

(ii) not procured with a view to commercial sale or resale, or for use in the production or

supply of a good or a service for commercial sale or resale;

(b) by any contractual means, including purchase, and rental or hire purchase, with or without an

option to buy;

(c) for which the value, as estimated in accordance with paragraphs 6 through 8, equals or

exceeds the relevant threshold specified in Annex 9 at the time of publication of a notice in

accordance with Article 162;

(d) by a procuring entity; and

(e) that is not otherwise excluded from coverage in paragraph 3 or Annex 9.

& /en 166

4. Except as otherwise provided in Annex 9, this Chapter does not apply to:

(a) the acquisition or rental of land, existing buildings or other immovable property or the rights

thereon;

(b) non-contractual agreements or any form of assistance that a Party provides, including

cooperative agreements, grants, loans, equity infusions, guarantees and fiscal incentives;

(c) the procurement or acquisition of fiscal agency or depository services, liquidation and

management services for regulated financial institutions or services related to the sale,

redemption and distribution of public debt, including loans and government bonds, notes and

other securities;

(d) public employment contracts;

(e) procurement conducted:

(i) for the specific purpose of providing international assistance, including development

aid;

(ii) under the particular procedure or condition of an international agreement relating to the

stationing of troops or relating to the joint implementation by the signatory countries of

a project; or

(iii) under the particular procedure or condition of an international organisation, or funded

by international grants, loans or other assistance if the applicable procedure or condition

would be inconsistent with this Chapter.

& /en 167

5. Each Party shall specify the following information in its respective Sub-sections to Annex 9:

(a) in Section 1, the central government entities whose procurement is covered by this Chapter;

(b) in Section 2, the sub-central government entities whose procurement is covered by this

Chapter;

(c) in Section 3, all other entities whose procurement is covered by this Chapter;

(d) in Section 4, the goods covered by this Chapter;

(e) in Section 5, the services, other than construction services, covered by this Chapter;

(f) in Section 6, the construction services covered by this Chapter; and

(g) in Section 7, any general notes;

(h) in Section 8, the media in which each Party publishes its procurement notices, award notices,

and other information related to its covered procurement system as set out in this Chapter.

6. If a procuring entity, in the context of covered procurement, requires a person not covered by

Annex 9 to procure in accordance with particular requirements, Article 160 shall apply mutatis

mutandis to such requirements.

& /en 168

Valuation

7. In estimating the value of a procurement for the purpose of ascertaining whether it is a

covered procurement, a procuring entity shall:

(a) neither divide a procurement into separate procurements nor select or use a particular

valuation method for estimating the value of a procurement with the intention of totally or

partially excluding it from the application of this Chapter; and

(b) include the estimated maximum total value of the procurement over its entire duration,

whether awarded to one or more suppliers, taking into account all forms of remuneration,

including:

(i) premiums, fees, commissions and interest; and

(ii) if the procurement provides for the possibility of options, the total value of such

options.

8. If an individual requirement for a procurement results in the award of more than one contract,

or in the award of contracts in separate parts ("recurring contracts") the calculation of the estimated

maximum total value shall be based on:

(a) the value of recurring contracts of the same type of good or service awarded during the

preceding 12 months or the procuring entity's preceding fiscal year, adjusted, if possible, to

take into account anticipated changes in the quantity or value of the good or service being

procured over the following 12 months; or

& /en 169

(b) the estimated value of recurring contracts of the same type of good or service to be awarded

during the 12 months following the initial contract award or the procuring entity's fiscal year.

9. In the case of procurement by rental or hire purchase of a good or a service, or procurement

for which a total price is not specified, the basis for valuation shall be:

(a) in the case of a fixed-term contract:

(i) if the term of the contract is 12 months or less, the total estimated maximum value for

its duration; or

(ii) if the term of the contract exceeds 12 months, the total estimated maximum value,

including any estimated residual value;

(b) if the contract is for an indefinite period, the estimated monthly instalment multiplied by 48;

and

(c) if it is not certain whether the contract is to be a fixed-term contract, subparagraph (b) applies.

& /en 170

ARTICLE 159

Security and general exceptions

1. Nothing in this Chapter shall be construed as preventing a Party from taking any action or to

not disclose any information that it considers necessary for the protection of its essential security

interests relating to the procurement:

(a) of arms, ammunition or war material;

(b) indispensable for national security; or

(c) for national defence purposes.

2. Subject to the requirement that such measures are not applied in a manner that would

constitute a means of arbitrary or unjustifiable discrimination between the Parties where the same

conditions prevail or a disguised restriction on international trade, nothing in this Chapter shall be

construed as preventing a Party to impose or enforce measures:

(a) necessary to protect public morals, order or safety;

(b) necessary to protect human, animal or plant life or health;

(c) necessary to protect intellectual property; or

(d) relating to goods or services of persons with disabilities, of philanthropic institutions or of

prison labour.

& /en 171

ARTICLE 160

General principles

Non-Discrimination

1. With respect to any measure regarding covered procurement, each Party, including its

procuring entities, shall accord immediately and unconditionally to the goods and services of the

other Party and to the suppliers of the other Party offering such goods or services, treatment no less

favourable than the treatment the Party, including its procuring entities, accords to its own goods,

services and suppliers.

2. With respect to any measure regarding covered procurement, a Party, including its procuring

entities, shall not:

(a) treat a locally established supplier less favourably than another locally established supplier on

the basis of the degree of foreign affiliation or ownership; or

(b) discriminate against a locally established supplier on the basis that the goods or services

offered by that supplier for a particular procurement are goods or services of the other Party.

& /en 172

Use of Electronic Means

3. When conducting covered procurement by electronic means, a procuring entity shall:

(a) ensure that the procurement is conducted using information technology systems and software,

including those related to authentication and encryption of information, that are generally

available and interoperable with other generally available information technology systems and

software;

(b) maintain mechanisms that ensure the integrity of requests for participation and tenders,

including establishment of the time of receipt and the prevention of inappropriate access; and

(c) use electronic means of information and communication for the publication of notices and

tender documentation in procurement procedures and, to the widest extent practicable, for the

submission of tenders.

Conduct of Procurement

4. A procuring entity shall conduct covered procurement in a transparent and impartial manner

that:

(a) is consistent with this Chapter, using methods such as open tendering, selective tendering and

limited tendering;

(b) avoids conflicts of interest; and

(c) prevents corrupt practices.

& /en 173

Rules of Origin

5. For the purposes of covered procurement, a Party shall not apply rules of origin to goods or

services imported from or supplied from the other Party that are different from the rules of origin

the Party applies at the same time in the normal course of trade to imports or supplies of the same

goods or services from the Party.

Offsets

6. With regard to covered procurement, a Party, including its procuring entities, shall not seek,

take account of, impose or enforce any offset.

Measures Not Specific to Procurement

7. Paragraphs 1 and 2 shall not apply to:

(a) customs duties and charges of any kind imposed on, or in connection with, importation;

(b) the method of levying such duties and charges; and

(c) other import regulations or formalities and measures affecting trade in services other than

measures governing covered procurement.

& /en 174

Anti-corruption measures

8. Each Party shall ensure that it has appropriate measures in place to address corruption in

government procurement. Such measures may include procedures to render ineligible for

participation in the Party's procurements, either indefinitely or for a stated period of time, suppliers

that the judicial authorities of the Party have determined by final decision to have engaged in

fraudulent or other illegal actions in relation to government procurement in the territory of that

Party. Each Party shall also ensure that it has in place policies and procedures to eliminate to the

extent possible or manage any potential conflict of interest on the part of those engaged in or having

influence over procurement.

ARTICLE 161

Information on the procurement system

1. Each Party shall:

(a) promptly publish any law, regulation, judicial decision, administrative ruling of general

application, standard contract clause mandated by law or regulation and incorporated by

reference in notices or tender documentation and procedure regarding covered procurement,

and any modifications thereof, in an officially designated electronic or paper medium that is

widely disseminated and remains readily accessible to the public; and

(b) provide an explanation thereof to the other Party, on request.

& /en 175

2. Each Party shall list in Section 8 of Annex 9:

(a) the electronic or paper media in which the Party publishes the information described in

paragraph 1;

(b) the electronic or paper media in which the Party publishes the notices required by

Articles 162, 164 and 171; and

(c) the website address or addresses where the Party publishes its notices concerning awarded

contracts pursuant to paragraph 2 of Article 171.

3. Each Party shall promptly notify the Cooperation Committee acting in trade configuration of

any modification to its means of information listed in Section 8 of Annex 9.

ARTICLE 162

Notices

Notice of Intended Procurement

1. For each covered procurement a procuring entity shall publish a notice of intended

procurement, except in the circumstances described in Article 168.

& /en 176

All notices (notices of intended procurement, summary notice and notice of planned procurement)

shall be directly accessible by electronic means free of charge through a single point of access on

the internet. In addition, the notices may also be published in an appropriate paper medium, which

shall be widely disseminated and shall remain readily accessible to the public, at least until

expiration of the time-period indicated in the notice.

Each Party shall list the appropriate paper and electronic medium in Section 8 of Annex 9.

2. Except as otherwise provided in this Chapter, each notice of intended procurement shall

include:

(a) the name and address of the procuring entity and other information necessary to contact the

procuring entity and obtain all relevant documents relating to the procurement, and their cost

and terms of payment, if any;

(b) a description of the procurement, including the nature and the quantity of the goods or

services to be procured or, if the quantity is not known, the estimated quantity;

(c) for recurring contracts, an estimate, if possible, of the timing of subsequent notices of

intended procurement;

(d) a description of any options;

(e) the time-frame for delivery of goods or services or the duration of the contract;

& /en 177

(f) the procurement method that will be used and whether it will involve negotiation or electronic

auction;

(g) if applicable, the address and any final date for the submission of requests for participation in

the procurement;

(h) the address and the final date for the submission of tenders;

(i) the language or languages in which tenders or requests for participation may be submitted, if

they may be submitted in a language other than an official language of the Party of the

procuring entity;

(j) a list and brief description of any conditions for participation of suppliers, including any

requirements for specific documents or certifications to be provided by suppliers in

connection therewith, unless such requirements are included in tender documentation that is

made available to all interested suppliers at the same time as the notice of intended

procurement;

(k) if, pursuant to Article 164, a procuring entity intends to select a limited number of qualified

suppliers to be invited to tender, the criteria that will be used to select them and, if applicable,

any limitation on the number of suppliers that will be permitted to tender; and

(l) an indication that the procurement is covered by this Chapter.

& /en 178

Summary Notice

3. For each case of intended procurement, a procuring entity shall publish a summary notice that

is readily accessible, at the same time as the publication of the notice of intended procurement, in

English. The summary notice shall contain at least the following information:

(a) the subject-matter of the procurement;

(b) the final date for the submission of tenders or, if applicable, any final date for the submission

of requests for participation in the procurement or for inclusion on a multi-use list; and

(c) the address from which documents relating to the procurement may be requested.

Notice of Planned Procurement

4. Procuring entities are encouraged to publish in the appropriate electronic and, if available,

paper medium listed in Section 8 as early as possible in each fiscal year a notice regarding their

future procurement plans ("notice of planned procurement"). The notice of planned procurement

shall also be published in the single point of access site listed in Section 8. The notice of planned

procurement should include the subject-matter of the procurement and the planned date or period of

the publication of the notice of intended procurement.

5. A procuring entity covered under Sections 2 or 3 may use a notice of planned procurement as

a notice of intended procurement provided that the notice of planned procurement includes as much

of the information referred to in paragraph 3 as is available to the entity and a statement that

interested suppliers should express their interest in the procurement to the procuring entity.

Each Party shall list the appropriate paper and electronic medium in Section 8 of Annex 9.

& /en 179

ARTICLE 163

Conditions for participation

1. A procuring entity shall limit any conditions for participation in a procurement to those that

are essential to ensure that a supplier has the legal and financial capacities and the commercial and

technical abilities to undertake the relevant procurement.

2. In establishing the conditions for participation, a procuring entity shall not:

(a) impose the condition that, in order for a supplier to participate in a procurement, the supplier

has previously been awarded one or more contracts by a procuring entity of a Party but may

require relevant prior experience if essential to meet the requirements of the procurement; and

(b) require prior experience in the territory of the Party to be a condition of the procurement but

may, where appropriate, require the bidder to demonstrate prior experience acquired in

specific climatic or topographic conditions.

3. In assessing whether a supplier satisfies the conditions for participation, a procuring entity:

(a) shall evaluate the financial capacity and the commercial and technical abilities of a supplier

on the basis of that supplier's business activities both inside and outside the territory of the

Party of the procuring entity; and

(b) shall base its evaluation on the conditions that the procuring entity has specified in advance in

notices or tender documentation.

& /en 180

4. If there is supporting evidence, a Party, including its procuring entities, may exclude a

supplier on grounds such as:

(a) bankruptcy;

(b) false declarations;

(c) significant or persistent deficiencies in performance of any substantive requirement or

obligation under a prior contract or contracts;

(d) final judgments in respect of serious crimes or other serious offences;

(e) professional misconduct or acts or omissions that adversely reflect on the commercial

integrity of the supplier;

(f) failure to pay taxes; or

(g) the supplier having been rendered ineligible for participation pursuant to paragraph 9 of

Article 160.

& /en 181

ARTICLE 164

Qualification of suppliers

Registration Systems and Qualification Procedures

1. A Party, including its procuring entities, may maintain a supplier registration system requiring

interested suppliers to register and provide certain information. In this case, the Party shall ensure

that interested suppliers have access to information on the registration system, and that they may

request registration at any time. The procuring entity or other authority in charge of the supplier

registration system shall inform the interested supplier within a reasonable period of time of the

decision to grant or reject their request. If the request is rejected, the decision shall be duly

motivated.

2. Each Party shall ensure that:

(a) its procuring entities make efforts to minimise differences in their qualification procedures;

and

(b) if its procuring entities maintain registration systems, the entities make efforts to minimise

differences in their registration systems.

3. A Party, including its procuring entities, shall not adopt or apply a registration system or

qualification procedure with the purpose or the effect of creating unnecessary obstacles to the

participation of suppliers of the other Party in its procurement.

& /en 182

Selective Tendering

4. If a procuring entity intends to use selective tendering, the entity shall:

(a) include in the notice of intended procurement at least the information specified in

paragraph 3, points (a), (b), (f), (g), (j), (k) and (l) of Article 162 and invite suppliers to

submit a request for participation; and

(b) provide, by the commencement of the time-period for tendering, at least the information

referred to in paragraph 3, points (c), (d), (e), (h) and (i) of Article 162, to the qualified

suppliers that it notifies as specified in paragraph 3, point (b) of Article 166.

5. A procuring entity shall allow all qualified suppliers to participate in a particular procurement,

unless the procuring entity states in the notice of intended procurement any limitation on the

number of suppliers that will be permitted to tender and the criteria for selecting the limited number

of suppliers. An invitation to submit a tender shall be addressed to a number of suppliers necessary

to ensure effective competition.

6. If the tender documentation is not published from the date of publication of the notice referred

to in paragraph 4, a procuring entity shall ensure that those documents are made available at the

same time to all the qualified suppliers selected in accordance with paragraph 5.

& /en 183

Multi-Use Lists

7. A procuring entity may maintain a multi-use list of suppliers, provided that a notice inviting

interested suppliers to apply for inclusion on the list is:

(a) published annually; and

(b) if published by electronic means, made available continuously,

in the appropriate medium listed in Section 8.

8. The notice provided for in paragraph 7 shall include:

(a) a description of the goods or services, or categories thereof, for which the list may be used;

(b) the conditions for participation to be satisfied by suppliers for inclusion on the list and the

methods that the procuring entity will use to verify that a supplier satisfies the conditions;

(c) the name and address of the procuring entity and other information necessary to contact the

entity and obtain all relevant documents relating to the list;

(d) the period of validity of the list and the means for its renewal or termination, or if the period

of validity is not provided, an indication of the method by which notice will be given of the

termination of use of the list; and

(e) an indication that the list may be used for procurement covered by this Chapter.

& /en 184

9. Notwithstanding paragraph 7, if a multi-use list will be valid for three years or less, a

procuring entity may publish the notice referred to in paragraph 7 only once, at the beginning of the

period of validity of the list, provided that the notice:

(a) states the period of validity and that further notices will not be published; and

(b) is published by electronic means and is made available continuously during the period of its

validity.

10. A procuring entity shall allow suppliers to apply at any time for inclusion on a multi-use list

and shall include on the list all qualified suppliers within a reasonably short time.

11. If a supplier that is not included on a multi-use list submits a request for participation in a

procurement based on a multi-use list and all required documents, within the time-period provided

for in paragraph 2 of Article 166, a procuring entity shall examine the request. The procuring entity

shall not exclude the supplier from consideration in respect of the procurement on the grounds that

the entity has insufficient time to examine the request, unless, in exceptional cases, due to the

complexity of the procurement, the entity is not able to complete the examination of the request

within the time-period allowed for the submission of tenders.

& /en 185

Entities listed in Sections 2 and 3

12. A procuring entity covered under Sections 2 and 3 of Annex 9 may use a notice inviting

suppliers to apply for inclusion on a multi-use list as a notice of intended procurement, provided

that:

(a) the notice is published in accordance with paragraph 7 and includes the information required

under paragraph 8, as much of the information required under paragraph 3 of Article 162 as is

available and a statement that it constitutes a notice of intended procurement or that only the

suppliers on the multi-use list will receive further notices of procurement covered by the

multi-use list; and

(b) the entity promptly provides to suppliers that have expressed an interest in a given

procurement to the entity, sufficient information to permit them to assess their interest in the

procurement, including all remaining information required in paragraph 3 of Article 162, to

the extent such information is available.

13. A procuring entity covered under Sections 2 and 3 of Annex 9 may allow a supplier that has

applied for inclusion on a multi-use list in accordance with paragraph 10 to tender in a given

procurement, if there is sufficient time for the procuring entity to examine whether the supplier

satisfies the conditions for participation.

14. A procuring entity shall promptly inform any supplier that submits a request for participation

in a procurement or application for inclusion on a multi-use list of the procuring entity's decision

with respect to the request or application.

& /en 186

15. If a procuring entity rejects a supplier's request for participation in a procurement or

application for inclusion on a multi-use list, ceases to recognise a supplier as qualified, or removes a

supplier from a multi-use list, the entity shall promptly inform the supplier and, on request of the

supplier, promptly provide the supplier with a written explanation of the reasons for its decision.

ARTICLE 165

Technical specifications and tender documentation

Technical Specifications

1. A procuring entity shall not prepare, adopt or apply any technical specification or prescribe

any conformity assessment procedure with the purpose or the effect of creating unnecessary

obstacles to international trade.

2. In prescribing the technical specifications for the goods or services being procured, a

procuring entity shall, if appropriate:

(a) set out the technical specification in terms of performance and functional requirements, rather

than design or descriptive characteristics; and

(b) base the technical specification on international standards that are recognised by the Party;

otherwise, on national technical regulations, recognised national standards or building codes.

& /en 187

3. If design or descriptive characteristics are used in the technical specifications, a procuring

entity should indicate, if appropriate, that it will consider tenders of equivalent goods or services

that demonstrably fulfil the requirements of the procurement by including words such as "or

equivalent" in the tender documentation.

4. A procuring entity shall not prescribe technical specifications that require or refer to a

particular trademark or trade name, patent, copyright, design, type, specific origin, producer or

supplier, unless there is no other sufficiently precise or intelligible way of describing the

procurement requirements and provided that, in such cases, the entity includes words such as "or

equivalent" in the tender documentation.

5. A procuring entity shall not seek or accept, in a manner that would have the effect of

precluding competition, advice that may be used in the preparation or adoption of any technical

specification for a specific procurement from a person that may have a commercial interest in the

procurement.

6. For greater certainty, a Party, including its procuring entities, may prepare, adopt or apply

technical specifications to promote the conservation of natural resources or protect the environment,

provided that it does so in accordance with this Article.

A Party may:

(a) allow contracting authorities to take into account environmental and social considerations

throughout the procurement procedure, provided they are non-discriminatory and they are

linked to the subject-matter of the contract; and

(b) take appropriate measures to ensure compliance with its obligations in the fields of

environmental, social and labour law, including the obligations under Chapter 10.

& /en 188

Tender Documentation

7. A procuring entity shall make available to suppliers tender documentation that includes all

information necessary to permit suppliers to prepare and submit responsive tenders. Unless already

provided in the notice of intended procurement, such documentation shall include a complete

description of:

(a) the procurement, including the nature and the quantity of the goods or services to be procured

or, if the quantity is not known, the estimated quantity and any requirements to be fulfilled,

including any technical specifications, conformity assessment certification, plans, drawings or

instructional materials;

(b) any conditions for participation of suppliers, including a list of information and documents

that suppliers are required to submit in connection with the conditions for participation;

(c) all evaluation criteria the entity will apply in the awarding of the contract, and, unless price is

the sole criterion, the relative importance of such criteria;

(d) if the procuring entity will conduct the procurement by electronic means, any authentication

and encryption requirements or other requirements related to the submission of information

by electronic means;

(e) if the procuring entity will hold an electronic auction, the rules, including identification of the

elements of the tender related to the evaluation criteria, on which the auction will be

conducted;

& /en 189

(f) if there will be a public opening of tenders, the date, time and place for the opening and, if

appropriate, the persons authorised to be present;

(g) any other terms or conditions, including terms of payment and any limitation on the means by

which tenders may be submitted, such as whether on paper or by electronic means; and

(h) any dates for the delivery of goods or the supply of services.

8. In establishing any date for the delivery of goods or the supply of services being procured, a

procuring entity shall take into account such factors as the complexity of the procurement, the

extent of subcontracting anticipated and the realistic time required for production, de-stocking and

transport of goods from the point of supply or for supply of services.

9. The evaluation criteria set out in the notice of intended procurement or tender documentation

may include, among others, price and other cost factors, quality, technical merit, environmental

characteristics and terms of delivery.

10. A procuring entity shall promptly:

(a) make available tender documentation to ensure that interested suppliers have sufficient time

to submit responsive tenders;

(b) provide, on request, the tender documentation to any interested supplier; and

(c) reply to any reasonable request for relevant information by any interested or participating

supplier, provided that such information does not give that supplier an advantage over other

suppliers.

& /en 190

Modifications

11. If a procuring entity modifies the criteria or requirements set out in the notice of intended

procurement or tender documentation provided to participating suppliers, or amends or reissues a

notice or tender documentation, it shall transmit in writing all such modifications or amended or re-

issued notice or tender documentation:

(a) to all suppliers that are participating at the time of the modification, amendment or re-

issuance, if such suppliers are known to the entity, and in all other cases, in the same manner

as the original information was made available; and

(b) in adequate time to allow such suppliers to modify and re-submit amended tenders, as

appropriate.

ARTICLE 166

Time-periods

1. A procuring entity shall, consistent with its own reasonable needs, provide sufficient time for

suppliers to prepare and submit requests for participation and responsive tenders, taking into

account such factors as:

(a) the nature and complexity of the procurement;

(b) the extent of subcontracting anticipated; and

& /en 191

(c) the time necessary for transmitting tenders by non-electronic means from foreign as well as

domestic points if electronic means are not used.

These time-periods, including any extension of the time-periods, shall be the same for all interested

or participating suppliers.

2. A procuring entity that uses selective tendering shall establish that the final date for the

submission of requests for participation, shall not, in principle, be less than 25 days from the date of

publication of the notice of intended procurement. If a state of urgency duly substantiated by the

procuring entity renders this time-period impracticable, the time-period may be reduced to not less

than 10 days.

3. Except as provided for in paragraphs 4, 5, 7 and 8, a procuring entity shall establish that the

final date for the submission of tenders shall not be less than 40 days from the date on which:

(a) in the case of open tendering, the notice of intended procurement is published; or

(b) in the case of selective tendering, the entity notifies suppliers that they will be invited to

submit tenders, whether or not it uses a multi-use list.

4. A procuring entity may reduce the time-period for tendering to not less than 20 days if:

(a) the procuring entity has published a notice of planned procurement as described in

paragraph 4 of Article 162 at least 40 days and not more than 12 months in advance of the

publication of the notice of intended procurement, and the notice of planned procurement

contains:

(i) a description of the procurement;

& /en 192

(ii) the approximate final dates for the submission of tenders or requests for participation;

(iii) a statement that interested suppliers should express their interest in the procurement to

the procuring entity;

(iv) the address from which documents relating to the procurement may be obtained; and

(v) as much of the information that is required for the notice of intended procurement under

paragraph 2 of Article 162, as is available;

(b) the procuring entity, for contracts of a recurring nature, indicates in an initial notice of

intended procurement that subsequent notices will provide time-periods for tendering based

on this paragraph; or

(c) a state of urgency duly substantiated by the procuring entity renders the time-period for

tendering established in accordance with paragraph 3 impracticable.

5. A procuring entity may reduce the time-period for tendering established in accordance with

paragraph 3 by five days for each one of the following circumstances:

(a) the notice of intended procurement is published by electronic means;

(b) all the tender documentation is made available by electronic means from the date of the

publication of the notice of intended procurement; and

(c) the entity accepts tenders by electronic means.

& /en 193

6. The use of paragraph 5, in conjunction with paragraph 4, shall in no case result in the

reduction of the time-period for tendering established in accordance with paragraph 3 to less than

10 days from the date on which the notice of intended procurement is published.

7. Notwithstanding any other provision in this Article, if a procuring entity purchases

commercial goods or services, or any combination thereof, it may reduce the time-period for

tendering established in accordance with paragraph 3 to not less than 13 days, provided that it

publishes by electronic means, at the same time, both the notice of intended procurement and the

tender documentation. In addition, if the entity accepts tenders for commercial goods or services by

electronic means, it may reduce the time-period established in accordance with paragraph 3 to not

less than 10 days.

8. If a procuring entity covered under Sections 2 or 3 of Annex 9 has selected all or a limited

number of qualified suppliers, the time-period for tendering may be fixed by mutual agreement

between the procuring entity and the selected suppliers. In the absence of agreement, the period

shall not be less than 10 days.

ARTICLE 167

Negotiation

1. A Party may provide for its procuring entities to conduct negotiations with suppliers:

(a) if the entity has indicated its intent to conduct negotiations in the notice of intended

procurement required under paragraph 2 of Article 162; or

& /en 194

(b) if it appears from the evaluation that no tender is obviously the most advantageous in terms of

the specific evaluation criteria set out in the notice of intended procurement or tender

documentation.

2. A procuring entity shall:

(a) ensure that any elimination of suppliers participating in negotiations is carried out in

accordance with the evaluation criteria set out in the notice of intended procurement or tender

documentation; and

(b) if negotiations are concluded, provide a common deadline for the remaining participating

suppliers to submit any new or revised tenders.

ARTICLE 168

Limited tendering

1. Provided that it does not use this provision for the purpose of avoiding competition among

suppliers or in a manner that discriminates against suppliers of the other Party or protects domestic

suppliers, a procuring entity may use limited tendering and may choose not to apply Articles 162

through 164, paragraphs 7 through 11 of Article 165, and Articles 166, 167, 169 and 170 under any

of the following circumstances:

(a) if:

(i) no tenders were submitted or no suppliers requested participation;

& /en 195

(ii) no tenders that conform to the essential requirements of the tender documentation were

submitted;

(iii) no suppliers satisfied the conditions for participation; or

(iv) the tenders submitted have been collusive;

provided that the requirements of the tender documentation are not substantially modified;

(b) if the goods or services can be supplied only by a particular supplier and no reasonable

alternative or substitute goods or services exist for any of the following reasons:

(i) the requirement is for a work of art;

(ii) the protection of patents, copyrights or other exclusive rights; or

(iii) due to an absence of competition for technical reasons;

(c) for additional deliveries by the original supplier of goods or services that were not included in

the initial procurement if a change of supplier for such additional goods or services:

(i) cannot be made for economic or technical reasons such as requirements of

interchangeability or interoperability with existing equipment, software, services or

installations procured under the initial procurement; and

(ii) would cause significant inconvenience or substantial duplication of costs for the

procuring entity;

& /en 196

(d) only when strictly necessary if, for reasons of extreme urgency brought about by events

unforeseeable by the procuring entity, the goods or services could not be obtained in time

using open tendering or selective tendering;

(e) for goods purchased on a commodity market;

(f) if a procuring entity procures a prototype or a first good or service that is developed at its

request in the course of, and for, a particular contract for research, experiment, study or

original development. Original development of a first good or service may include limited

production or supply in order to incorporate the results of field testing and to demonstrate that

the good or service is suitable for production or supply in quantity to acceptable quality

standards, but does not include quantity production or supply to establish commercial viability

or to recover research and development costs;

(g) for purchases made under exceptionally advantageous conditions that only arise in the very

short term in the case of unusual disposals such as those arising from liquidation, receivership

or bankruptcy, but not for routine purchases from regular suppliers; or

(h) if a contract is awarded to a winner of a design contest provided that:

(i) the contest has been organised in a manner that is consistent with the principles of this

Chapter, in particular relating to the publication of a notice of intended procurement;

and

(ii) the participants are judged by an independent jury with a view to a design contract

being awarded to a winner.

& /en 197

2. A procuring entity shall prepare a report in writing on each contract awarded under

paragraph 1. The report shall include the name of the procuring entity, the value and kind of goods

or services procured and a statement indicating the circumstances and conditions described in

paragraph 1 that justified the use of limited tendering.

ARTICLE 169

Electronic auctions

If a procuring entity intends to conduct a covered procurement using an electronic auction, the

entity shall provide each participant, before commencing the electronic auction, with:

(a) the automatic evaluation method, including the mathematical formula, that is based on the

evaluation criteria set out in the tender documentation and that will be used in the automatic

ranking or re-ranking during the auction;

(b) the results of any initial evaluation of the elements of its tender if the contract is to be

awarded on the basis of the most advantageous tender; and

(c) any other relevant information relating to the conduct of the auction.

& /en 198

ARTICLE 170

Treatment of tenders and awarding of contracts

Treatment of Tenders

1. A procuring entity shall receive, open and treat all tenders under procedures that guarantee the

fairness and impartiality of the procurement process, and the confidentiality of tenders.

2. A procuring entity shall not penalise any supplier whose tender is received after the time

specified for receiving tenders if the delay is due solely to mishandling on the part of the procuring

entity.

3. If a procuring entity provides a supplier with an opportunity to correct unintentional errors of

form between the opening of tenders and the awarding of the contract, the procuring entity shall

provide the same opportunity to all participating suppliers.

Awarding of Contracts

4. To be considered for an award, a tender shall be submitted in writing and shall, at the time of

opening, comply with the essential requirements set out in the notices and tender documentation

and be from a supplier that satisfies the conditions for participation.

& /en 199

5. Unless a procuring entity determines that it is not in the public interest to award a contract, the

entity shall award the contract to the supplier that the entity has determined to be capable of

fulfilling the terms of the contract and that, based solely on the evaluation criteria specified in the

notices and tender documentation, has submitted:

(a) the most advantageous tender; or

(b) if price is the sole criterion, the lowest price.

6. If a procuring entity receives a tender with a price that is abnormally lower than the prices in

other tenders submitted, it may verify with the supplier that it satisfies the conditions for

participation and is capable of fulfilling the terms of the contract. The procuring entity may also

verify whether the supplier has obtained subsidies. In that case, the tender may be rejected on that

ground alone unless the supplier is able to prove, within a sufficient time limit fixed by the

procuring entity, that the subsidy was granted in compliance with the disciplines relating to

subsidies set out in this Agreement.

7. A procuring entity shall not use options, cancel a procurement or modify awarded contracts in

a manner that circumvents the obligations under this Chapter.

8. Each Party shall provide, as a general rule, for a standstill period between the award and the

conclusion of a contract in order to give sufficient time to unsuccessful bidders to review and

challenge the award decision.

& /en 200

ARTICLE 171

Transparency of procurement information

Information Provided to Suppliers

1. A procuring entity shall promptly inform participating suppliers of the entity's contract award

decisions and, on the request of a supplier, shall do so in writing. Subject to paragraph 2 and

paragraph 3 of Article 172, a procuring entity shall, on request, provide an unsuccessful supplier

with an explanation of the reasons why the procuring entity did not select its tender and the relative

advantages of the successful supplier's tender.

Publication of Award Information

2. Not later than 72 days after the award of each contract covered by this Chapter, a procuring

entity shall publish a notice in the appropriate paper or electronic medium listed in Section 8 of

Annex 9. If the entity publishes the notice only in an electronic medium, the information shall

remain readily accessible for a reasonable period of time. The notice shall include at least the

following information:

(a) a description of the goods or services procured;

(b) the name and address of the procuring entity;

(c) the name and address of the successful supplier;

& /en 201

(d) the value of the successful tender or the highest and lowest offers taken into account in the

award of the contract;

(e) the date of award; and

(f) the type of procurement method used, and in cases where limited tendering was used in

accordance with Article 168, a description of the circumstances justifying the use of limited

tendering.

Maintenance of Documentation, Reports and Electronic Traceability

3. Each procuring entity shall, for a period of at least three years from the date it awards a

contract, maintain:

(a) the documentation and reports of tendering procedures and contract awards relating to

covered procurement, including the reports required under Article 168; and

(b) data that ensure the appropriate traceability of the conduct of covered procurement by

electronic means.

& /en 202

ARTICLE 172

Disclosure of information

Provision of Information to Parties

1. On request of the other Party, a Party shall provide promptly any information necessary to

determine whether a procurement was conducted fairly, impartially and in accordance with this

Chapter, including information on the characteristics and relative advantages of the successful

tender. In cases where release of the information would prejudice competition in future tenders, the

Party that receives the information shall not disclose it to any supplier, except after consulting with,

and obtaining the consent of, the Party that provided the information.

Non-Disclosure of Information

2. Notwithstanding any other provision of this Chapter, a Party, including its procuring entities,

shall not provide to any particular supplier information that might prejudice fair competition

between suppliers.

3. Nothing in this Chapter shall be construed to require a Party, including its procuring entities,

authorities and review bodies, to disclose confidential information where disclosure:

(a) would impede law enforcement;

(b) might prejudice fair competition between suppliers;

& /en 203

(c) would prejudice the legitimate commercial interests of particular persons, including the

protection of intellectual property; or

(d) would otherwise be contrary to the public interest.

Exchange of Statistics

4. Each Party shall make available to the other Party statistics on bilateral government

procurement on an annual basis.

ARTICLE 173

Review procedures

1. Each Party shall provide a timely, effective, transparent and non-discriminatory

administrative or judicial review procedure through which a supplier may challenge:

(a) a breach of this Chapter; or

(b) if the supplier does not have a right to challenge directly a breach of the Chapter under the

law of that Party, a failure to comply with the Party's measures implementing this Chapter,

arising in the context of a covered procurement, in which the supplier has, or has had, an interest.

The procedural rules for all challenges shall be in writing and made generally available.

& /en 204

2. In the event of a complaint by a supplier arising in the context of covered procurement in

which the supplier has, or has had, an interest that there has been a breach or a failure as referred to

in paragraph 1, the Party of the procuring entity conducting the procurement shall encourage the

entity and the supplier to seek resolution of the complaint through consultations. The entity shall

accord impartial and timely consideration to any such complaint in a manner that is not prejudicial

to the supplier's participation in ongoing or future procurement or its right to seek corrective

measures under the administrative or judicial review procedure.

3. Each supplier shall be allowed a sufficient period of time to prepare and submit a challenge,

which in no case shall be less than 10 days from the time when the basis of the challenge became

known or reasonably should have become known to the supplier.

4. Each Party shall establish or designate at least one impartial administrative or judicial

authority that is independent of its procuring entities to receive and review a challenge by a supplier

arising in the context of a covered procurement.

5. If a body other than an authority referred to in paragraph 4 initially reviews a challenge, the

Party shall ensure that the supplier may appeal the initial decision to an impartial administrative or

judicial authority that is independent of the procuring entity whose procurement is the subject of the

challenge.

6. Each Party shall ensure that a review body that is not a court shall have its decision subject to

judicial review or have procedures that provide that:

(a) the procuring entity shall respond in writing to the challenge and disclose all relevant

documents to the review body;

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(b) the participants to the proceedings ("participants") shall have the right to be heard prior to a

decision of the review body being made on the challenge;

(c) the participants shall have the right to be represented and accompanied;

(d) the participants shall have access to all proceedings;

(e) the participants shall have the right to request that the proceedings take place in public and

that witnesses may be presented; and

(f) the review body shall make its decisions or recommendations in a timely fashion, in writing,

and shall include an explanation of the basis for each decision or recommendation.

7. Each Party shall adopt or maintain procedures that provide for:

(a) rapid interim measures to preserve the supplier's opportunity to participate in the

procurement. Such interim measures may result in suspension of the procurement process.

The procedures may provide that overriding adverse consequences for the interests concerned,

including the public interest, may be taken into account when deciding whether such

measures should be applied. Just cause for not acting shall be provided in writing; and

(b) where a review body has determined that there has been a breach or a failure as referred to in

paragraph 1, corrective action or compensation for the loss or damages suffered, which may

be limited to either the costs for the preparation of the tender or the costs relating to the

challenge, or both.

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ARTICLE 174

Modifications and Rectifications to Coverage

1. A Party may propose to modify or rectify Annex 9 with regard to provisions determining its

covered procurement.

Modifications

2. A Party that intends to propose a modification to Annex 9 shall:

(a) notify the other Party in writing; and

(b) include in the notification a proposal for appropriate compensatory adjustments to the other

Party to maintain a level of coverage comparable to that existing prior to the modification.

3. Notwithstanding subparagraph 2(b), a Party does not need to provide compensatory

adjustments if the modification covers a procuring entity over which the Party has effectively

eliminated its control or influence.

4. The other Party must object in writing within 45 days of receipt of the notification referred to

in sub-paragraph 2 (a), if it disputes that:

(a) an adjustment proposed in accordance with sub-paragraph 2 (b) is adequate to maintain a

comparable level of mutually agreed coverage; or

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(b) the modification covers an entity over which the Party has effectively eliminated its control or

influence in accordance with paragraph 3,

If the other Party has not made an objection within the time limit it is deemed to have accepted the

adjustment or modification.

Rectifications

5. The following changes to Annex 9 shall be considered a rectification of a purely formal

nature, provided that they do not affect the mutually agreed coverage provided for in this Chapter:

(a) a change in the name of a procuring entity;

(b) a merger of two or more procuring entities listed in Annex 9; and

(c) the separation of a procuring entity listed in an Annex 9 into two or more procuring entities

that are all added to the procuring entities listed in the same Annex 9.

The party making such rectification of a purely formal nature shall not be obliged to provide for

compensatory adjustments.

6. With regard to proposed rectifications to Annex 9, each Party shall notify the other Party once

every two years following the entry into force of this Agreement.

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7. A Party may notify the other Party of an objection to a proposed rectification within 45 days

from having received the notification. A Party submitting an objection shall set out the reasons why

it considers the proposed rectification as not in compliance with paragraph 5 and describe the effect

of the proposed rectification on the mutually agreed coverage provided for in this Agreement. If no

objection is submitted in writing within 45 days after reception of the notification, the other Party

shall be deemed to have agreed to the proposed rectification. The other Party may request in writing

additional time for analysing the proposed rectifications if the proposed changes require further

verification of the information or additional clarifications from the proposing Party.

Consultations and Dispute Settlement

8. If the other Party objects to the proposed modification or rectification, the Parties shall seek to

resolve the issue through consultations. If the Parties do not reach an agreement within 60 days of

receipt of the objection, the Party seeking to modify or rectify Annex 9 may refer the matter to the

dispute settlement procedure under this Agreement.

ARTICLE 175

Institutional Provisions

On the request of a Party, the Cooperation Committee, meeting in its trade configuration shall

address matters relating to the implementation and operation of this Chapter, such as:

(a) the modification, rectification or amendment of Annex 9;

(b) matters related to the operation of this Chapter;

(c) any other matters regarding government procurement.

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CHAPTER 10

TRADE AND SUSTAINABLE DEVELOPMENT

ARTICLE 176

Context and objectives

1. The Parties recall Agenda 21 of the UN Conference on Environment and Development

of 1992, the ILO Declaration on Fundamental Principles and Rights at Work of 1998, the

Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent

Work of 2006, the ILO Declaration on Social Justice for a Fair Globalisation of 2008 and the

UN 2030 Agenda for Sustainable Development of 2015 with its Sustainable Development Goals

(hereinafter referred to as SDGs).

2. The Parties recognise that economic development, social development and environmental

protection are interdependent and mutually reinforcing components of sustainable development.

The Parties affirm their commitment to promote the development of international trade or

investment in such a way as to contribute to the objective of sustainable development, notably as

expressed in their multilateral commitments on labour and on environment.

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ARTICLE 177

Right to regulate and levels of protection

1. The Parties recognise the right of each Party to determine its sustainable development policies

and priorities, to establish the levels of domestic environmental and labour protection it deems

appropriate, and to adopt or modify its relevant law and policies accordingly. Such levels, laws and

policies shall be consistent with each Party's commitments to the internationally recognized

agreements and standards referred to in Article 178.

2. Each Party shall strive to ensure that its relevant laws and policies provide for and encourage

a high level of environmental and labour protection.

3. The Parties recognise that it is inappropriate to encourage trade or investment by weakening

or reducing the levels of protection afforded in their environmental law or in their labour law and

standards.

4. A Party shall not seek to encourage trade or investment by waiving or derogating from its

environmental or labour law or, through a sustained or recurring course of action or inaction, failing

to enforce its environmental and labour law effectively.

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ARTICLE 178

Multilateral environmental agreements and labour conventions

1. The Parties recognise the value of international environmental governance and agreements as

a response of the international community to sustainable development challenges concerning the

environment, as well as of full and productive employment and decent work for all as key elements

of sustainable development.

2. In this context, and taking into account Articles 290, 291, 292, 293, 294, 295, each Party shall

effectively implement the multilateral environmental agreements (MEAs), that it has ratified

respectively, including the 2015 Paris Agreement on climate change and the UN Framework

Convention on Climate Change done at New York on 9 May 1992.

3. Taking into account Article 314, each Party shall effectively implement the internationally

recognised core labour standards as defined in the fundamental ILO conventions, as well as the

other ILO conventions that the Republic of Uzbekistan and the Member States of the European

Union have ratified respectively. The Parties will work towards ratification of other conventions

and protocols that are classified as up to date by the ILO. Each Party will adopt and implement

measures and policies regarding occupational health and safety and will maintain an effective

labour inspection system, consistent with the relevant ILO conventions to which it is or may

become a Party.

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ARTICLE 179

Trade and investment favouring sustainable development

1. The Parties reaffirm their commitment to enhance the contribution of trade to the objective of

sustainable development. Accordingly, they shall promote corporate social

responsibility/responsible business conduct practices, trade and investment in environmental goods

and services, and the use of sustainability assurance schemes, such as fair and ethical trade and

eco-labelling.

2. Parties shall exchange information and share experience on their actions to promote

coherence and mutual supportiveness between trade, social and environmental policies, and shall

strengthen dialogue and cooperation on sustainable development issues that may arise in the context

of trade relations

3. Such dialogue and cooperation shall involve relevant stakeholders, in particular social

partners, as well as other civil society organisations, through the civil society cooperation

established pursuant to Article 341.

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ARTICLE 180

Dispute Settlement

Articles 250 to 254 included in Chapter 14 of this Title do not apply to disputes under this Chapter.

For any such dispute, after the panel has delivered its final report in accordance with Articles 248

and 249, the Parties, taking that report into account, shall discuss suitable measures to be

implemented. The Cooperation Committee shall monitor the implementation of any such measures

and shall keep the matter under review, including through the mechanism referred to in Article

179(3).

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CHAPTER 11

TRANSPARENCY

ARTICLE 181

Objective

Recognising the impact which their respective regulatory environment may have on trade and

investment between them, the Parties aim to provide a predictable regulatory environment and

efficient procedures for economic operators, especially small and medium-sized enterprises.

ARTICLE 182

Definitions

For the purposes of this Chapter:

(a) "administrative decision" means a decision, act or action with legal effect that applies to a

specific person, good or service in an individual case, and covers the failure to take an

administrative decision as provided for in the law of a Party;

(b) "interested person" means any person that may be affected by a measure of general

application; and

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(c) "measure of general application" means laws, regulations, procedures, administrative rulings

and judicial decisions of general application pertaining to any matter covered by this Title, as

provided for in the law of a Party.

ARTICLE 183

Publication

Each Party shall ensure that a measure of general application with respect to any matter covered by

this Title:

(a) is promptly published via an officially designated medium and, where feasible, electronic

means, or otherwise made available in such a manner as to enable any person to become

acquainted with it;

(b) provides an explanation of the objective of, and rationale for, the measure; and

(c) allows for sufficient time between publication and entry into force of laws and regulations, at

least if it increases the burden on economic operators, except where this is not possible on

grounds of urgency. This point does not apply to judicial or administrative rulings.

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ARTICLE 184

Enquiries

1. Each Party shall establish or maintain appropriate mechanisms for responding to enquiries

from any person regarding any laws or regulations, with respect to any matter covered by this Title.

2. Upon request of a Party, the other Party shall promptly provide information and respond to

questions pertaining to any law or regulation whether in force or at the stage of development, with

respect to any matter covered by this Title.

ARTICLE 185

Implementation of measures of general application

1. Each Party shall administer in an objective, impartial, and reasonable manner all measures of

general application with respect to any matter covered by this Title.

2. When applying the measures referred to in paragraph 1 to particular persons, goods or

services of the other Party in specific cases each Party shall:

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(a) endeavour to provide persons who are directly affected by administrative proceedings, with

reasonable notice, in accordance with its laws and regulations, when proceedings are initiated,

including a description of the nature of the proceedings, a statement of the legal authority

under which the proceedings are initiated and a general description of any issues in question;

and

(b) afford persons a reasonable opportunity to present facts and arguments in support of their

positions prior to any final administrative decision in so far as time, the nature of the

proceedings and the public interest permit.

ARTICLE 186

Review and appeal

1. Each Party shall establish or maintain judicial, arbitral or administrative tribunals or

procedures for the purposes of the prompt review and, where warranted, correction of

administrative decisions with respect to any matter covered by this Title. Each Party shall ensure

that its procedures for appeal or review are carried out in a non-discriminatory and impartial manner

by its tribunals. Those tribunals shall be impartial and independent of the authority entrusted with

administrative enforcement and shall not have any interest in the outcome of the matter.

2. Each Party shall ensure that the parties to the proceedings referred to in paragraph 1 are

provided with the right to:

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(a) a reasonable opportunity to support or defend their respective positions; and

(b) a decision based on the evidence and submissions of record or, where required by its law, the

relevant record compiled by the administrative authority.

3. The decision referred to in paragraph 2(b) shall, subject to appeal or further review as

provided for in its law, be implemented by the authority entrusted with administrative enforcement.

ARTICLE 187

Relation to other chapters

This Chapter shall be without prejudice to any specific rules established in other Chapters of this

Title.

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CHAPTER 12

INVESTMENT AND TRADE IN SERVICES

SECTION 1

GENERAL PROVISIONS

ARTICLE 188

Scope

1. The Parties, affirming their commitment to create a better environment for the development of

investment and trade between them, hereby lay down the necessary arrangements in view of

improving reciprocal conditions of investment and trade in services.

2. The Parties affirm the right to regulate and to introduce new regulations within their territories

to achieve legitimate policy objectives, including the protection of public health, social services,

public education, safety, the environment including climate change, public morals, social or

consumer protection, privacy and data protection, or the promotion and protection of cultural

diversity.

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3. This Chapter does not apply to measures affecting natural persons of a Party seeking access to

the employment market of the other Party, nor to measures regarding nationality or citizenship,

residence or employment on a permanent basis.

4. This Chapter shall not prevent a Party from applying measures to regulate the entry of natural

persons into, or their temporary stay in, its territory, including measures necessary to protect the

integrity of its borders and to ensure the orderly movement of natural persons across them, provided

that such measures are not applied in such a manner as to nullify or impair the benefits1 accruing to

the other Party under the terms of this Chapter.

5. This Chapter does not apply to any measure of a Party with respect to the procurement of a

good or service by a government or agency purchased for governmental purposes, and not with of a

view to commercial resale or with a view to use in the supply of a good or service for commercial

sale, whether or not such procurement is covered procurement within the meaning of Chapter 9.

6. This Chapter does not apply to subsidies or grants provided by the Parties, including

government-supported loans, guarantees, and insurance.

1 The sole fact of requiring a visa for natural persons of certain countries and not for natural

persons of other countries shall not be regarded as nullifying or impairing benefits under this

Chapter.

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7. This Chapter does not apply to:

(a) air services or related services in support of air services1, other than the following:

(i) aircraft repair and maintenance services;

(ii) computer reservation system (CRS) services;

(iii) ground handling services; and

(iv) the selling and marketing of air transport services;

(b) audio-visual services;

(c) inland waterways; and

(d) national maritime cabotage2.

1 For greater certainty, air services or related services in support of air services include, but are

not limited to, the following services: air transportation; services provided by using an aircraft

whose primary purpose is not the transportation of goods or passengers, such as aerial fire-

fighting flight training, sightseeing, spraying, surveying, mapping, photography, parachute

jumping, glider towing, helicopter-lift for logging and construction, and other airborne

agricultural, industrial and inspection services; rental of aircraft with crew and airport

operation services. 2 Without prejudice to the scope of activities which may be considered as cabotage under the

relevant national legislation, national maritime cabotage under this Chapter covers, for the

European Union, transportation of passengers or goods between a port or point located in a

Member State of the European Union and another port or point located in that same Member

State of the European Union, including on its continental shelf, as provided for in the United

Nations Convention on the Law of the Sea, and traffic originating and terminating in the same

port or point located in a Member State of the European Union.

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ARTICLE 189

Definitions

For the purposes of this Chapter:

(a) "aircraft repair and maintenance services" means such activities when undertaken on an

aircraft or a part thereof while it is withdrawn from service and does not include so-called line

maintenance;

(b) "activities performed or services supplied in the exercise of governmental authority" means

activities which are performed or services which are supplied neither on a commercial basis

nor in competition with one or more economic operators;

(c) "computer reservation system (CRS) services" means services provided by computerised

systems that contain information about air carriers' schedules, availability, fares and fare

rules, through which reservations can be made or tickets may be issued;

(d) "covered enterprise" means an enterprise in the territory of a Party established in accordance

with point (h) by a juridical person of the other Party, in accordance with the applicable law,

already established on the date of entry into force of this Agreement or established thereafter;

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(e) "cross-border trade in services" means the supply of a service:

(i) from the territory of a Party into the territory of the other Party; or

(ii) in the territory of a Party to the service consumer of the other Party;

(f) "economic activity" means any activity of an industrial, commercial or professional character

or activities of craftsmen, including the supply of services, except for activities performed in

the exercise of governmental authority;

(g) "enterprise" means a juridical person or a branch or a representative office of a juridical

person;

(h) "establishment" means the setting up or the acquisition of a juridical person, including

through capital participation, or the creation of a branch or representative office of a juridical

person, in the territory of a Party, with a view to creating or maintaining lasting economic

links;

(i) "existing" means in effect on the date of signature of this Agreement;

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(j) "ground handling services" means the supply at an airport, on a fee or contract basis, of the

following services: airline representation, administration and supervision; passenger handling;

baggage handling; ramp services; catering; air cargo and mail handling; fuelling of an aircraft;

aircraft servicing and cleaning; surface transport; and flight operations, crew administration

and flight planning; the term ground handling services does not include: self-handling;

security; aircraft repair and maintenance; or management or operation of essential centralised

airport infrastructure, such as de-icing facilities, fuel distribution systems, baggage handling

systems and fixed intra airport transport systems;

(k) "juridical person" means any legal entity duly constituted or otherwise organised under the

applicable law, whether for profit or otherwise, and whether privately-owned or

governmentally-owned, including any corporation, trust, partnership, joint venture, sole

proprietorship or association;

(l) "juridical person of a Party" means:1

(i) for the European Union:

(A) a juridical person constituted or organised under the law of the European Union or

of at least one of its Member States and engaged in substantive business

operations2 in the territory of the European Union; and

(B) a shipping company established outside the European Union, and controlled by a

natural person of a Member State of the European Union, whose vessel is

registered in, and fly the flag of, a Member State of the European Union;

1 For greater certainty, the shipping companies mentioned in this subparagraph are only

considered as juridical persons of a Party with respect to their activities relating to the supply

of maritime transport services. 2 In line with its notification of the Treaty establishing the European Community to the

WTO (WT/REG39/1), the European Union understands that the concept of "effective and

continuous link" with the economy of a Member State of the European Union enshrined in

Article 54 of the TFEU is equivalent to the concept of "substantive business operations".

& /en 225

(ii) for the Republic of Uzbekistan:

(A) a juridical person constituted or organised under the law of the Republic of

Uzbekistan and engaged in substantive business operations in the territory of the

Republic of Uzbekistan; and

(B) a shipping company established outside the Republic of Uzbekistan, and

controlled by a natural person of the Republic of Uzbekistan, whose vessel is

registered in, and fly the flag of, the Republic of Uzbekistan;

(m) "measure of a Party" means any measure adopted or maintained by:1

(i) central, regional or local governments or authorities; and

(ii) non-governmental bodies in the exercise of powers delegated by central, regional or

local governments or authorities;

(n) "natural person of a Party" means:

(i) for the European Union, a national of one of the Member States of the European Union

according to its law;2 and

(ii) for the Republic of Uzbekistan, a national of the Republic of Uzbekistan according to its

law;

1 For greater certainty, the term measure of a Party covers measures by entities listed under

points (l)(i) and (l)(ii), which are adopted or maintained by instructing, directing or

controlling, either directly or indirectly, the conduct of other entities with regard to those

measures. 2 For the European Union, the term natural person of a Party also includes persons permanently

residing in the Republic of Latvia who are not citizens of the Republic of Latvia or any other

state but who are entitled, under the law of the Republic of Latvia, to receive a non-citizen's

passport.

& /en 226

(o) "operation" means the conduct, management, maintenance, use, enjoyment, or sale or other

form of disposal of an enterprise;

(p) "selling and marketing of air transport services" means opportunities for the air carrier

concerned to sell and market freely its air transport services including all aspects of marketing

such as market research, advertising and distribution, but not including the pricing of air

transport services nor the applicable conditions;

(q) "service" means any service in any sector except services supplied in the exercise of

governmental authority;

(r) "service supplier" means any person that seeks to supply or supplies a service.

ARTICLE 190

Horizontal limitation for services

1. Notwithstanding any other provisions of this Chapter, a Party shall not be required to accord,

in respect of sectors or measures covered by GATS, treatment which is more favourable than that

which such Party is required to accord under GATS; and this in respect of each service sector, sub-

sector and mode of supply. This provision shall apply as from the day one month prior to the date of

entry into force of each of the relevant obligations of a Party under GATS.

& /en 227

2. For greater certainty, in regard to services, GATS schedules of specific commitments of the

European Union, including the reservations and its Annex on Article II exemptions (list of most-

favoured-nation exemptions), shall be incorporated into and made part of this Agreement.

3. For greater certainty, prior to the accession of the Republic of Uzbekistan to the WTO, the

schedule of specific commitments of the Republic of Uzbekistan, including the reservations, is the

one set out in Annexes 12-B, 12-C and 12-D.

ARTICLE 191

Economic integration agreements

The treatment granted in accordance with this Chapter does not apply in respect of the treatment

accorded by a Party pursuant to an agreement which substantially liberalises trade in services

(including establishment in the area of services) meeting the criteria of Articles V and V bis of

GATS or to an agreement which substantially liberalises establishment in other economic activities,

meeting the same criteria, in respect of such activities.

& /en 228

ARTICLE 192

Transparency and disclosure of confidential information

1. A Party shall respond promptly to all requests by the other Party for specific information on

any of its measures of general application, including standards and criteria for licensing and

certification of investors and services suppliers and information concerning the appropriate

regulatory or other body or international agreements which pertain to or affect matters within the

scope of this Chapter. Each Party shall establish one or more enquiry points and notify the other

Party with the contact details. Those enquiry points shall provide, upon request, specific

information to investors and service suppliers of the other Party on all such matters.

2. Each Party shall publish promptly all measures of general application, which pertain to or

affect the operation of this Chapter. Where such publication is not practical, the information on such

measures shall otherwise be made publicly available.

3. Nothing in this Agreement shall require a Party to provide confidential information, the

disclosure of which would impede law enforcement, or otherwise be contrary to the public interest,

or which would prejudice legitimate commercial interests of particular enterprises, public or private.

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SECTION 2

INVESTMENT

ARTICLE 193

Scope

This Section applies to measures of a Party affecting establishment or operation in its territory to

perform economic activities by:

(a) juridical persons of the other Party; and

(b) covered enterprises.

ARTICLE 194

Most favoured nation treatment and national treatment

1. Without prejudice to the reservations inscribed in Annex 12-A and the GATS schedules of

specific commitments of the European Union and in Annex 12-B, each Party shall accord to

juridical persons of the other Party and to covered enterprises treatment no less favourable than that

it accords, in like situations, to juridical persons of a third country and to their enterprises, with

respect to establishment and operation in its territory.

& /en 230

2. Without prejudice to the reservations inscribed in Annex 12-A and the GATS schedules of

specific commitments of the European Union and in Annex 12-B, each Party shall accord to

juridical persons of the other Party and to covered enterprises treatment no less favourable than that

it accords, in like situations, to its own juridical persons and to their enterprises, with respect to

establishment and operation in its territory.

3. The treatment accorded under paragraph 2 means:

(a) with respect to a regional or local level of government of the Republic of Uzbekistan,

treatment no less favourable than the most favourable treatment accorded, in like situations,

by that level of government to juridical persons of the Republic of Uzbekistan and to their

enterprises in its territory; and

(b) with respect to a government of, or in, a Member State of the European Union, treatment no

less favourable than the most favourable treatment accorded, in like situations, by that

government to juridical persons of that Member State and to their enterprises in its territory.

4. This Article shall not be construed as obliging a Party to extend to juridical persons of the

other Party or to covered enterprises the benefit of any treatment resulting from:

(a) an international agreement for the avoidance of double taxation or other international

agreement or arrangement relating wholly or mainly to taxation; or

& /en 231

(b) measures providing for recognition, including of the standards or criteria for the authorisation,

licencing, or certification of a natural person or enterprise to carry out an economic activity,

or of prudential measures as referred to in paragraph 3 of the GATS Annex on Financial

Services.

5. For greater certainty, the treatment referred to in paragraph 1 does not include dispute

settlement procedures provided for in other international agreements.

6. For greater certainty, substantive provisions in other international agreements concluded by a

Party with a third country do not in themselves constitute the treatment referred to in paragraph 1.

Measures of a Party pursuant to those provisions1 may constitute such treatment and thus give rise

to a breach of this Article.

ARTICLE 195

Senior management and boards of directors

Without prejudice to the reservations listed in Annex 12-A and the GATS schedules of specific

commitments of the European Union and in Annex 12-B, a Party shall not require a covered

enterprise to appoint individuals of any particular nationality as executives, managers or members

of boards of directors.

1 For greater certainty, the mere transposition of substantive provisions in other international

agreements concluded by a Party with a third country into domestic law, to the extent that it is

necessary in order to incorporate them into the domestic legal order, does not in itself qualify

as a measure.

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ARTICLE 196

Denial of benefits

A Party may deny the benefits of this Section to a juridical person of the other Party or to a covered

enterprise, if the denying Party adopts or maintains measures related to the maintenance of

international peace and security, including the protection of human rights, which:

(a) prohibit transactions with that juridical person or covered enterprise; or

(b) would be violated or circumvented if the benefits of this Section were accorded to that

juridical person or covered enterprise, including where the measures prohibit transactions

with a person who owns or controls any of them.

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SECTION 3

CROSS-BORDER TRADE IN SERVICES

ARTICLE 197

Scope

This Section applies to measures of a Party affecting the cross-border trade in services by service

suppliers of the other Party.

ARTICLE 198

National treatment

1. Without prejudice to Article 190, in the sectors for which commitments are inscribed in the

GATS schedules of specific commitments of the European Union and in Annex

12-C, each Party shall accord to services and service suppliers of the other Party treatment no less

favourable than that it accords, in like situations, to its own services and services suppliers.

2. A Party may meet the requirement of paragraph 1 by according to services and service

suppliers of the other Party either formally identical treatment or formally different treatment to that

it accords to its own services and service suppliers.

& /en 234

3. Formally identical or formally different treatment shall be considered to be less favourable if

it modifies the conditions of competition in favour of services or service suppliers of the Party

compared to services or service suppliers of the other Party.

4. Nothing in this Article shall be construed as requiring either Party to compensate for inherent

competitive disadvantages which result from the foreign character of the relevant services or

services suppliers.

ARTICLE 199

Progressive further liberalisation

1. The Parties shall endeavour in accordance with this Section to take the necessary steps to

further allow progressively cross-border trade in services taking into account the development of

the service sectors in the Parties.

2. The Cooperation Committee in trade configuration shall make recommendations for the

implementation of paragraph 1.

3. The Parties shall endeavour to avoid the adoption of any measure which renders the

conditions for cross-border trade in services more restrictive than the situation existing on the day

preceding the date of signature of this Agreement.

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ARTICLE 200

Denial of benefits

A Party may deny the benefits of this Section to a service supplier of the other Party if the denying

Party adopts or maintains measures related to the maintenance of international peace and security,

including the protection of human rights, which:

(a) prohibit transactions with that service supplier; or

(b) would be violated or circumvented if the benefits of this Section were accorded to that service

supplier, including where the measures prohibit transactions with a person who owns or

controls it.

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SECTION 4

ENTRY AND TEMPORARY STAY OF NATURAL PERSONS FOR BUSINESS PURPOSES

ARTICLE 201

Scope and definitions

1. This Section applies to measures of a Party affecting the supply of services through the entry

and temporary stay in its territory of natural persons of the other Party, who fall within the scope of

the following categories:

(a) business visitors for establishment purposes;

(b) contractual service suppliers; and

(c) intra-corporate transferees.

2. To the extent that commitments are not undertaken in this Section, all requirements provided

for in the law of a Party regarding the entry and temporary stay of natural persons shall continue to

apply, including regulations concerning the period of stay.

3. Notwithstanding the provisions of this Section, all requirements provided for in the law of a

Party regarding work and social security measures shall continue to apply, including regulations

concerning minimum wages and collective wage agreements.

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4. Commitments on the entry and temporary stay of natural persons for business purposes do not

apply in cases where the intent or effect of the entry and temporary stay is to interfere with or

otherwise affect the outcome of any labour or management dispute or negotiation, or the

employment of any natural person who is involved in that dispute.

5. For the purposes of this Section:

(a) "business visitors for establishment purposes" means natural persons, working in a senior

position within a juridical person of a Party, who:

(i) are responsible for setting up an enterprise of such juridical person in the territory of the

other Party;

(ii) do not offer or provide services or engage in any economic activity other than that

which is required for the purposes of the establishment of that enterprise; and

(iii) do not receive remuneration from a source located within the other Party;

(b) "contractual services suppliers" means natural persons employed by a juridical person of a

Party other than through an agency for placement and supply services of personnel, which is

not established in the territory of the other Party and has concluded a bona fide contract1, to

supply services to a final consumer in the other Party requiring the temporary presence of its

employees2 who:

1 For the European Union the bona fide contract shall not exceed 12 months. 2 The service contract referred to under (b) shall comply with the requirements of the law of the

Party where the contract is executed.

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(i) have offered such services as employees of the juridical person for a period of not less

than one year immediately preceding the date of their application for entry and

temporary stay;

(ii) possess, on that date:

(A) at least professional experience of three years, for natural persons of the European

Union, and five years, for natural persons of the Republic of Uzbekistan in the

relevant activity1;

(B) a university degree or a qualification demonstrating knowledge of an equivalent

level2; and

(C) the professional qualifications legally required to exercise that activity in the other

Party; and

(iii) do not receive remuneration from a source located within the other Party;

(c) "intra-corporate transferees" means natural persons, who:

1 Obtained after having reached the age of majority. 2 Where the degree or qualification has not been obtained in the Party where the service is

supplied, that Party may evaluate whether this is equivalent to a university degree required in

its territory.

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(i) have been employed by a juridical person of a Party or its branch, or have been partners

in it, for a period of not less than one year immediately preceding the date of their

application for the entry and temporary stay in the other Party;

(ii) at the time of application reside outside the territory of the other Party;

(iii) are temporarily transferred to an enterprise of the juridical person in the territory of the

other Party1 which is a member of the group of the originating juridical person or

branch, including its representative office, subsidiary, branch or head company; and

(iv) who, for the European Union, belong to the categories of:

(A) managers working in a senior position, who primarily direct the management of

the enterprise2 in the other Party, receiving general supervision or direction

principally from the board of directors or from stockholders of the business or

their equivalent and whose responsibilities include:

(1) directing the enterprise or a department or subdivision thereof;

(2) supervising and controlling the work of other supervisory, professional or

managerial employees; and

1 For greater certainty, managers and specialists may be required to demonstrate they possess

the professional qualifications and experience needed in the juridical person to which they are

transferred. 2 For greater certainty, while managers or executives do not directly perform tasks concerning

the actual supply of the services, this does not prevent them, in the course of executing their

duties as described above, from performing such tasks as may be necessary for the provision

of the services.

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(3) having the authority to recommend hiring, dismissing or other personnel-

related actions; or

(B) specialists possessing specialised knowledge, essential to the enterprise's areas of

activity, techniques or management, which shall be assessed taking into account

not only knowledge specific to the enterprise, but also whether the person has a

high level of qualification, including adequate professional experience, referring

to a type of work or activity requiring specific technical knowledge, including

possible membership of an accredited profession; or

(v) who, for the Republic of Uzbekistan, carry out their work on the territory of that Party,

are no citizen of the Republic of Uzbekistan and fulfil the following minimal criteria:

(A) have completed a higher education relevant for the exercised profession;

(B) possess in the envisaged field of activity at least 5-years of experience; and

(C) receive an annual salary (remuneration) in the Republic of Uzbekistan of an

amount not less than the equivalent of SDR 22 000.

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ARTICLE 202

Intra-corporate transferees and business visitors for establishment purposes

1. In the sectors, subsectors and activities listed in the GATS schedules of specific commitments

of the European Union or in Annex 12-B and subject to any reservations listed therein1: